Heading into a divorce, you are likely to have concerns over issues like child custody, child support, spousal support and property division. In some way or another, you probably know that each issue will at some point relate to the almighty dollar. Furthermore, necessary legal fees and other financial hits will accumulate throughout the process that you may not expect or prepare for. If you are concerned about your finances as they relate to your divorce, consider the following tips:
- Plan ahead: How you develop a post-divorce budget could make a world of difference in the long run. Do you have an idea for the financial demands that you will face when the dust of the divorce settles? Start taking note of what you might need – like vehicles, housing costs, support payments and other responsibilities.
- Face your debts: You and your ex-spouse may have significant debts under both of your names. It is in your best interest to try to pay off as many debts prior to the divorce as possible. Lenders will seek payments from either of you – even after the divorce is finalized.
- Take care of marital assets: Keep in mind the assets that are not as easy to divide and those that may have long-term value. Consider: Is keeping the house that important? What about a brokerage account? Also, be prepared for tax implications of the assets you obtain.
- Revise legal documents and titles: Especially for those who are divorcing later in life, you may want to update important documents like your powers of attorney or health care directives. Post-divorce, you likely will not want your ex-spouse making your financial decisions should you become incapacitated.
When added up, the financial demands of life during and after a divorce can drastically change your way of life. However, there are resources that can help and lawyers with experience who will work to provide your case with efficiency.