Divorce changes every aspect of your life. There’s a good chance you will move to a new house, no longer have someone to come home to and no longer have two income streams to support your family.
The financial impact of divorce can be significant for some couples. Because of this, it’s smart to start planning for your finances as soon as you know divorce is on the horizon.
Get to know your current financial situation
When you are going through a divorce, or even before you file, get a good understanding of your income and expenses. Knowing these financial elements will help you determine a budget for after your divorce. Also, organizing your financial situation will help split assets and debts and determine child support and spousal support payments.
Factor in all potential costs
It’s important to look past just your typical monthly costs. You need to also factor in vacations, emergency expenses (car repairs, new appliances, etc.) and what you need to put back in savings. It may be wise to work with a financial advisor to help you develop a plan that will ensure you can take care of yourself and your family after your divorce.
Don’t make any significant purchases or financial decisions
When you are going through a divorce, you shouldn’t make any significant purchases or financial decisions. This is an emotional time, and it may be a decision based on emotion rather than your actual situation. Waiting until after the divorce will help you make an objective decision regarding financial moves.
Protecting your finances during and after a divorce
Taking steps to protect your financial situation during and after divorce will benefit you now and in the future. Get to know your legal options and rights in a divorce to better understand where your finances will stand when your divorce is final.