A divorce may result in sudden changes in a person’s life. Whether it’s living on your own, figuring out the complexities of child visitation rights, or finding a completely new set of friends, such changes are often drastic and difficult to adjust to. Some of them may even be difficult to foresee before a divorce.
Nevertheless, one important and easily-anticipated adjustment a person who is going into a divorce must take into consideration is the financial impact of the dissolution of marriage. However, the steps you may have to take to adapt to a new financial situation may not be easy and requires careful planning. Unfortunately, according to one survey, many Americans are financially unprepared for a divorce. In this article, we will analyze 3 practical suggestions that can help a person avoid a financial catastrophe both during a divorce and long after the divorce papers have been signed.
Start Monitoring Your Spending
One of the hardest aspects of adequately preparing your finances for after the divorce is to correctly estimate your future income and spending. You can tackle this issue by starting to monitor your current income and expenses. Which of these expenses are fixed? Which are optional? Which are strictly yours and which are generated by your spouse? It is equally critical to remember that, as a one-person household, your taxes will change as well. You need to take into consideration all possible changes in order to come up with a realistic figure of your post-divorce financial needs.
Make a Record of Your Assets and Liabilities
This part may be especially challenging if your spouse takes care of your family’s finances. You will be on your own after the divorce, so you must know precisely how much they own as well as how much you own. In order to create a clear record of your current financial situation, you need to obtain copies of documents such as:
- bank account statements
- Social Security statements
- title deeds for properties
- statements for any loans, mortgages, and credit card expenses
- tax returns from the last 3 years
Having all of this information will not only help you with the division of assets during a divorce, but will also give you a better understanding of your finances now. This, in turn, may make you feel more comfortable about managing your assets, investments, and debt all by yourself.
Start Saving Early
All the expenses related to a divorce – like attorney fees – can add up quickly. The average cost of a divorce in America is estimated at $15,000 per person. What’s more, a divorce is usually time-consuming, which means you may need to take some days off work, which may incur additional financial losses. All of this means that, if you have decided to go into a divorce, you need to start saving early. Such savings will help you cover the divorce costs, but also will prepare you for the first few months after the divorce when your finances are likely to be more unstable.
Have a Question About Divorce? Ask The Grey Legal Group
While it is possible to get a divorce without the help of a lawyer, such an option is unfeasible for most couples. On the other hand, while choosing a divorce attorney, you want someone with reasonable rates and a personal approach to your case and circumstances. The Grey Legal Group is a trusted California law firm that offers comprehensive legal assistance on divorce cases. Along with our expertise, we also offer our compassionate support and guidance. Contact us today to learn how we can streamline the divorce process for you.
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