Maintaining two separate households after a divorce can be an extremely costly endeavor. In many instances, the same family income is divided up to run two residences and pay all bills associated with both of them. In addition to this, one spouse is inevitably paying spousal and child support, adding even more financial strain to an already difficult financial adjustment. Thus, it is important to approach divorce proceedings with a clear head and accurate picture of one’s finances.
Here are a few steps that you can take towards financial security while in the process of a divorce:
- Compile a list of all your monthly expenses. This is especially important for individuals who have never dealt with bills or managed the household budget because their spouse was in charge of everything.
- Figure out what your immediate needs are and how much they will cost in the short-term and the long-term. Examples of this would be a new car, a new place to live, health insurance and everyday items such as groceries and gas.
- Take account of any shared dept and if possible, eliminate it before finalizing the divorce. Carrying this debt forward can wreak havoc on financial security as joint debt remains the liability of both the spouses, even after the divorce. If one ex-spouse fails to make payments, it affects the other one as well.
- Develop a post-divorce budget based on your assessment of all of the above.
Taking these steps at the onset of a divorce can save you the headache of financial problems in the future and protect you from draining savings and retirement accounts. Consider consulting our experienced attorneys for tailored advice on how to project your finances in a divorce proceeding.