Couples preparing for divorce have a lot to manage both emotionally and financially. The toll divorce can take is immense, which is why it is so important to prepare. Shoring up your finances and looking ahead at what’s to come can help you better weather the financial strains you are sure to encounter as you and your spouse split.
Steps to Take Financially as You Prepare for Divorce
Start saving – One of the first things you should do to prepare for the financial strains of divorce is open up a separate bank account and start setting aside money for the divorce itself. There will be fees that come with the proceedings, expenses that may come with moving into a new home, and other financial obligations will likely arise as you begin separating from your spouse. As a bonus, by planning ahead, you may end up saving money in the long haul and moving through the divorce process more quickly.
Evaluate your assets – Take stock of your individual and shared assets and debts. Now is the time to truly get organized and understand every aspect of your cash flow – who brings in what and where that money is spent or invested. If your partner is the one who has historically managed more of the financial responsibilities in the relationship, don’t hesitate to seek advice from a financial planner.
Understand your budget and financial needs post-divorce – Separating from your spouse will mean new financial responsibilities and potential lifestyle changes to accommodate new budget constraints. Consider what your life will look like post-divorce and what your budget will look like as a single person. If you have kids, calculate what is required to be paid on their behalf, such as private school, daycare, and extracurricular activities.
In addition, be sure to make changes to your healthcare designation, power of attorney, and living will so your ex doesn’t make decisions for you.
As you prepare for divorce, don’t overlook the importance of planning ahead for the financial strains of divorce and for life post-divorce. Our team at Vasquez de Lara Law Group can help you understand what’s to come step-by-step and guide you through the process of best preparing for your given situation. Get in touch today to schedule a free case evaluation.