In today’s interconnected world, market performance, and family law are often more intertwined than they seem. Fluctuations in the market can significantly impact family finances, asset distribution during divorces, child support arrangements, and more. A New Bern family law lawyer explains some of the connections.
Child Support and Alimony
If the market crashes or, conversely, if there’s an upswing, our income can drastically change. With a cost-of-living crisis soaring worldwide, providing child support and alimony, as dictated by the courts, can become almost impossible. In this case, it might be necessary to return to the court and discuss whether any modification can be put in place to protect from market instability on both sides.
Dividing the Assets
Dividing assets has always been a complex and emotive process, and this can only be made more complicated if the economy becomes uncertain. Real estate, retirement funds, and stocks can all change dramatically in value, depending on market forces, which can significantly impact each party’s ability to move on and begin life again.
This sometimes leads to people waiting it out in a marriage they would rather not be part of anymore because they know that the current market will devalue their property and lead to fewer assets. This can seem incredibly unfair if you have worked all your life as a couple, meaning people put up with being in an unhappy marriage.
Prenups
The unstable financial times have led to more people looking for prenuptial agreements, as these are crucial when protecting each individual’s assets where they are tied to market forces.
Business Entanglement
Things can also become complicated if the partners are not only married but carry out business transactions together or have shares in the family company. The market performance will play a critical role in determining the fair value of such businesses and assets, which will again impact buyout agreements.
Money Causes Stress
Unfortunately, market instability can also be the cause of many divorces and family stresses. Financial anxieties can cause many negative feelings to surface, and this intern can cause relationships to break down. If this happens during a market slump, everything above will apply, and the assets will have a lower value, leaving both parties feeling out of pocket.
Planning for the End
Inheritance and estate planning also fall under the umbrella of family law, and again, market conditions and fluctuations are all influences when it comes to the decisions and how inheritance is distributed among family members. It’s a good idea to have periodic reviews of your assets and estate planning to make sure that your intended beneficiaries are able to have their rightful share of your money, regardless of how volatile the market is when that time comes.
So, as you can see, there are actually more links than one might expect between family law and market performance. If anyone is facing legal issues related to their divorce, alimony, or custody, it’s vital that they are aware of how the market performance can impact the decisions that are made.
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