by Oscar R. Mondragon
How to Financially Prepare Yourself for a Divorce
If you look at some of the most stressful events in life, you’ll find that divorce and marital separation both have a podium position on the list. Preparing yourself mentally and financially for a divorce can be hard on anyone, so here, we will discuss what you can do to lessen the blow before, during and after a divorce, financially.
Before we get into that, though, here are the results of a survey about life’s most stressful events.
Why do we use it?
Divorce is stressful not just because of the emotions and life-interruptions that follow, but also the hefty prenuptial agreements. Here are some steps that you can take before-hand to reduce the impacts of a divorce.
Preparing Financially for a Divorce
Organize Your Financial Assets
With everything going on in your life, you might not be in the right headspace, and that’s understandable. However, you need to get a grip for a few hours and think. Remember, life will go on after the divorce, and if you end up mismanaging your financial portfolio, you’ll regret it even more later on.
Cope with the situation as you must but sit down for a while with the goal of organizing your assets, and make a list of all of your own and your spouse's accounts, assets, liabilities, tax returns and any other statements you can find and see how it all is impacted, and to what extent.
Financial Commitments That You Are Both In
We do not recommend getting into any major financial commitments right now, be it a loan, buying a new place while keeping the old one, or more. Selling your house, though, is a separate story.
Get a Credit Card in Your Name
As you struggle emotionally, your finances will also struggle. One of the best things you can do to prepare financially for a divorce is to make backup plans. Get a credit card with your name alone, since you might not be able to get one after the divorce.
Divorces May Cost a Lot. Be Prepared
An uncontested or a collaborative divorce can minimize your divorce expenses significantly, but here, the question isn’t about ‘will you’ but ‘can you have such a divorce?’ Such divorces are becoming a dying breed these days.
However, even then, the divorce process will inevitably cost something. As events unfold, maintain an ‘expenses sheet’ that will help you get a rough estimate on how much the divorce will cost – uncontested or otherwise. Getting caught unaware might lead to mismanagement of finances.
Remember; the court is a tool, not a weapon when it comes to divorce.
If any payment related to the divorce isn't made, not only will it lead to further damaging your relationship with your ex-spouse, but also to fines or getting the authorities involved, thus leading to a much more expensive payout.
You can buy some time, but it will only be a sword hanging over your head. The best way to handle your divorce financially and navigate the troubled waters is to be proactive and be ready beforehand.
If you’re having trouble, or are simply overwhelmed, there is no shame in accepting help – and that is exactly why we’re here. At Centric, we sift through your financial records to help you find the best route toward clearer skies by preparing you financially for a divorce and handling the process the right way.
So, get in touch today and let us help!