Although it’s an emotional process, divorce might also be the biggest financial transaction that you participate in during your lifetime. Property division, alimony, and child support can completely shift the dynamics of your financial well-being for decades to come.
As a result, many people worry about what their financial positioning will look like post-divorce. This stress can be overwhelming, but there are steps that you can take to ease that burden.
How to financially prepare for your post-divorce life
It might be hard to face the matter head-on, but you need to take the time necessary to prepare yourself for life after marriage dissolution. To better ensure that you have your financial house in order, here are some tips that we encourage you to follow:
- Gain a realistic understanding of how your key divorce legal issues will play out, including property division and spousal support requests.
- Create a post-divorce budget that realistically takes into account your cash flow and liabilities.
- Consider the liquidity of the assets you possess and those that you hope to secure through the property division process.
- Think about whether you need to increase your income by changing jobs or picking up a second job.
- Consider whether you need to downsize your living arrangements to save costs.
- Take a close look at your discretionary spending to see if you need to cut back.
One of the most important things you can do when planning for your post-divorce life is to be honest with yourself. Don’t over-inflate what you think your income will look like or how much property you expect to get out of your divorce. Instead, you should hope for the best but plan for the worst.
Develop a divorce legal strategy that protects your future
There’s a lot that goes into developing a divorce strategy. You want to ensure that you approach the matter in a way that’s right for you. With that in mind, we encourage you to take the time needed to fully think through these matters, educate yourself on your options, and choose the path that makes the most sense for you.