5 Ways to Prepare Yourself Financially for Divorce
Jun 08, 2021
Out of all the beautiful experiences in a woman's life, marriage holds a supreme status. It’s something that nourishes, soothes, and nurtures our soul inside out. But, while the idea of two people sharing the same room, living together till death do them apart may appear fancy, on the flip side of the coin, things don’t always go how you wish them to be. Among all the heartbreaks you might have undergone, divorce is the major one. No matter how hard you push, how many counselors you turn to, or how deeply you wish to stay together, sometimes, marriage just doesn't work.
And...It’s OKAY.
It's no secret that getting a divorce is tough on mental, emotional, and physical health. It’s a cumbersome process from beginning to end. But there is one area of your life that is intensely impacted by this Big change—your financial life.
While marriage is considered the best way to build wealth, divorce is financially destructive. This is because your assets, money, acquired wealth, accumulated debt are likely to split among you and your former spouse. In such scenarios, often even women with assets under their name suffer financially.
So, if you’re going through a hard-to-save marriage and know that it’s not going to last, it might be hard to hear, but I feel so sorry for you ending up here. But, trust me, when I say, “You will survive it & you’ll come back stronger.”
To help you secure your finances and future during or after the divorce, I have prepared this great checklist that will walk you through the steps to prepare yourself financially during or after the divorce.
So, relax, sit on your favorite couch, grab a pen and paper and take notes. Don’t forget, "There is a light at the end of a tunnel."
Let’s get started.
Organize Your Finances
Before proceeding towards divorce, you must organize all of your financial assets. An easy way to do that is to list the assets and debts acquired throughout your marriage. So, start collecting copies of your financial records such as tax returns, bank account statements, mortgage or brokerage statements, credit card statements, insurance policies, auto or home loan statements, etc.
Prepare For The Post-Divorce Expenses
If you’re sure that your marriage can't be saved and divorce is the only way out of it, then it's best to prepare beforehand for your post-divorce expenses. Start by tracking your everyday expenses and creating a marital budget. It will help you identify your current monthly payments when living together and how much money you need to cover up the monthly expenses when you start living alone in your separate household. You can start by tracking the costs of utility bills, clothing expenses, home rent or maintenance expenses, childcare expenses (if applicable), vacation or holiday trips, etc. Once you're clear on how much you would need in your post-divorce life, it becomes relatively easy to devise your strategies accordingly.
Plan Long-Term
Another significant thing that can help you sort out your post-divorce financial life is to think about the asset agreement you wish to come out with through the divorce process. First, you must figure out what’s your top priority. Is it about maintaining the same lifestyle or creating a financial backup, or getting the house? Once you’re clear on what outcome you want, it becomes easier to go with the divorce proceedings.
Don’t Rush In Separating The Finances
Until your divorce is final, you must continue using your account, either joint or personal, as usual. Any attempt to separate the finances before any legal proceeding may complicate things because of the varying state laws. So, it's better to stay transparent with your spouse about the finances. For example, suppose you have no separate money to hire a divorce attorney or spend on divorce-related expenses. In that case, you can either talk to your spouse about spending a certain amount or go for a legal separation. In the latter case, you will be instructed legally on how much you could spend until your divorce is finalized.
Seek Financial Help
While your divorce attorney may help you through the divorce proceedings, he will eventually say goodbye the moment you're divorced. Now, there comes the troublesome part of dealing with the post-divorce financial situation. First and foremost, you must ensure that your assets have been split accurately, and secondly, you must figure out how to take care of your financial life. Planning post-divorce economic life may include setting a new spending plan, outlining savings goals, taking advantage of investment opportunities, preparing for retirement, etc. Doing that all alone may be overwhelming, and that's where I can help you make wise and responsible financial moves to help you secure your future.
As a financial coach, I empower single/divorcee professional women like you to break through to financial freedom. With my proven, revolutionary methods to teach finance, I have helped hundreds of women like you unlock their true potential, change their money beliefs, gain the money power to reach their short and long-term financial goals.
If you're the one trapped in such an uncomfortable situation and looking for a genuine helping hand, don't hesitate to take me on this journey with you. Let's have a meaningful conversation about your personal, professional, and financial goals and lay out an excellent, easy-to-follow financial plan helping you reach your life goals fast.
Always remember: Everything is going to be alright, maybe not today but eventually.
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