Fortifying New Beginnings: Getting Ready for Divorce in the Upcoming Year
Even when divorce is inevitable, it's not something you wake up one day feeling prepared to handle. If you plan to take this step in the new year, it's essential to start getting your situation manageable before life gets too complicated. Here are some tips to help you plan for this significant life change.
1. Get Organized
The first order of business is to gather documents. You need to have a crystal-clear picture of your financial situation, so make sure to collect these items:
- Bank statements
- Tax returns
- Pay stubs
- Credit card bills
- Mortgage information
- Retirement account details
Collecting your documents and information is handy when sharing information with your lawyer or a financial professional.
2. Create a Budget
Getting divorced means a change in your household income. You may need to prioritize different areas of spending. A budget gives an overview of your essential costs and helps you find where you need to reduce your spending.
First, jot down every monthly expense you expect to have – your rent or mortgage, utility bills, grocery expenses, and the payments on any outstanding debts – and compare the total expenses to your income to see if you have enough to cover everything. If not, you must eliminate unnecessary expenses or find ways to increase your income.
3. Know Your Assets and Liabilities
You need to know what you have and what you owe. Your assets are your house, savings, investments, 401(k), IRAs, stocks, and all you own. You also need to know what you owe. List any loans taken out, any cars you own that still have an auto loan balance, and any balances on credit cards, etc. Prepare all this information for your meeting with an attorney and discuss dividing your assets with your soon-to-be ex-spouse.
4. Think About Child Support or Alimony
Consider child support costs and who pays for them if you have children. If one of you has been financially dependent on the other, that spouse probably has an expectation of support going forward. Get a sense of what to expect when planning your future budget.
5. Talk to a Lawyer
It's important to get legal advice even if you’re sure your divorce is amicable. A family law attorney should explain what your rights are and help you figure out what the next steps might be. Your attorney may also help you fill out all the paperwork you need to file for divorce and negotiate an acceptable settlement for you and your spouse.
Final Thoughts
Things change when you get a divorce. Above all else, make sure you get your finances in order before you take any irrevocable steps. Take your time and plan appropriately to get through this challenging time. Hopefully, there may be better times in the future.
Transform Your Money-Fears into Money-Loves!
Unlock your patterns, gain clarity and focus, and become supremely confident with money using my simple 8-step approach to changing your financial future.
Transform Your Money-Fears into Money-Loves!
Unlock your patterns, gain clarity and focus, and become supremely confident with money using my simple 8-step approach to changing your financial future.
