No one gets married expecting to get divorced, but unfortunately, it is a reality for many couples. If you find yourself in the midst of a divorce, there are a lot of things to think about and sort out – not the least of which is your finances. Divorce can be an expensive process, both emotionally and financially. It is important to be mindful of your finances during this time so that you can make sound decisions and protect your interests.
Here are some tips on how to handle your finances during a divorce:
- Get organized. One of the first things you should do is get organized. This means gathering all relevant financial documents such as tax returns, bank, and investment statements, pay stubs, and bills. This will give you a clear picture of your financial situation and help you make informed decisions about your future.
- Make a budget. Once you have all of your financial information gathered, it is time to make a budget. This will help you determine what expenses are essential and how much money you will need to live on after the divorce. Be sure to factor in one-time costs such as attorney’s fees and the cost of moving into your new home.
- Create a separation agreement. If you and your spouse can agree on the terms of the divorce, it is a good idea to create a separation agreement. This document can outline who will pay what debts, how property will be divided, and other important financial matters. Having everything in writing can help avoid disputes down the road.
- Speak with a financial advisor. Divorce can have a major impact on your finances, both in the short and long term. Therefore, it is a good idea to speak with a financial advisor to get guidance on how to best protect your interests. They can help you make decisions about things like retirement accounts and investments.
- Avoid using credit. During a divorce, it is best to avoid using credit. This can lead to more debt and can make it difficult to get back on track financially after the divorce is final. In addition, Once you have finalized your divorce, it is important to make a plan for your finances. This includes setting up a budget and creating a savings plan.
- Keep communication open. If you have children, it is important to keep communication open with your ex-spouse about financial matters. This includes things like child support and healthcare costs. By keeping the lines of communication open, you can avoid disagreements and ensure that everyone is on the same page.
Though finances are always a touchy subject, divorcing couples must be careful to calculate who will receive what and how much. In some cases, one spouse may have been the primary money manager during the marriage and the other has no idea about shared assets. A divorce lawyer can help you understand your options and come to an equitable conclusion for both parties moving forward. If you or someone you know is considering divorce, please contact us today for more information on how we can help.