Getting a divorce will likely significantly impact you emotionally. It is hard to end your marriage, even if you know it is necessary. Along with the emotional difficulties come financial issues as well. If you do not prepare financially, your divorce may result in financial devastation.
While dissolving your marriage will inevitably affect your finances, it does not need to totally wreck you. Here are some tips for staying on top of your finances throughout the divorce process.
1. Expect a drop in income
You should prepare for an income reduction to occur once everything is final. According to Policygenius divorce tips, you should prepare for this by developing a sensible budget. Consider only what you need and eliminate unnecessary expenses. Factor all sources of funding in your budget, including any child or spousal support. After you create a budget, you should show it to an honest and reasonable family member or friend and get his or her opinion on it.
2. Understand what you have
Start gathering statements regarding all financial holdings as soon as possible. This will help you compile a list of all the assets you have. This will help you when you start negotiating your settlement. Take note of any assets such as:
- Real estate
- Personal property
- Retirement accounts
- Liquid assets
- Business interests
- Life insurance
Make sure you value each asset and note the portions you own.
3. Check your credit
If you have not looked at your credit score yet this year, this is the time to do it. Your credit score will determine the rates you get on loans so you will want to know where you are. You also want to ensure the accuracy of your credit history. Request a score and avoid letting your divorce drive you into credit trouble.
The divorce may put a strain on your finances, but you can survive the storm.