If you’re heading toward divorce, then you’re probably worried about a lot of things. Chief among them may be your financial well-being post-divorce. Marriage dissolution might be the biggest financial transaction that you make in your lifetime, and the ramifications can be huge, immediate, and long-lasting.
But as stressful as this process can seem, you should take comfort knowing that there are steps that you can take now to prepare yourself for financial success once all is said and done.
Financially preparing yourself for life after divorce
Even though you’re dealing with a lot of stress, you’ll want to take a deep breath, slow down, and think about how you can address each of the following to protect your interests once your divorce is finalized:
- Income: Your household income will probably drop significantly post-divorce. Be realistic about what your income will look like and whether you need to seek other sources of revenue, even if that’s in the form of spousal support, greater access to retirement funds, or supplemental employment.
- Debt: You’ll want to try to avoid taking on as much marital debt as possible, but you’ll need to make sure that you budget appropriately to ensure that you can cover these expenses.
- Discretionary spending: Be honest with yourself about your discretionary spending so that you can see if you need to cut back here. This is probably the first place you’ll want to turn if you’re going to be on shaky financial footing post-divorce.
- Living arrangements: Your housing is a massive expense. Once your divorce is over, you might want to think about downsizing if you haven’t already as a way to save on living expenses.
Be proactive to protect your future
Of course, you can address many of these issues in a budget, which you should create once you know what the outcome of your divorce is going to look like. But by starting that process now, you may have a better idea of what you need out of your marriage dissolution to ensure financial stability.
That’s why now is the time for you to start thinking about your financial future. An attorney who is experienced in navigating divorce, property division, and post-divorce finances may be able to give you some guidance here so that you can find yourself on the road to post-divorce financial success.