Divorce is an expensive process, from the costs of hiring attorneys to splitting up assets. Single living tends to costs more, and recently single people are used to sharing expenses such as child care and daily costs of living.
In modern day, it is not unusual for a female to be the money-maker in a relationship. Because of this, financial planning for divorce is not just for women.
The following steps can help you prepare financially for a divorce:
Gather all necessary financial documents
You’ll want to consider how much your current life has been costing you. Gather your financial records – including bank account details, mortgage and credit card statements, tax returns and details of shareholdings. Gathering this information now will relieve some of the stress of negotiating finances during the divorce process.
This also includes knowing precisely what your assets and liabilities are. If you’ve lacked financial control during your marriage, you should take the time to gain this knowledge to help level the playing field.
Before beginning the divorce process and talking with an attorney, you should have a clear idea about the outcome you want from the process. What do you want your life to look like in five years? What about 10 years? Prioritize what is most important, maintaining your current lifestyle or focusing on financial security.
When in the initial stages of divorce, you may need financial help and that is okay. You may need help developing a new financial plan, or budget, and may be interested in reinvesting whatever you receive as part of your settlement.
Divorce isn’t something to rush into, but if you find yourself amid a failing marriage, don’t despair. There are resources available to you to help you financially prepare for what’s to come.