Although divorce can have tremendous emotional implications for you and your family, it’s also a major financial transaction. If you’re not careful as you navigate the process, then you could wind up at a disadvantage as you move onto the next chapter of your life.
With so much at stake, you shouldn’t be so eager to give into your spouse’s demands. Instead, you need to exercise foresight and develop a plan that sets you on a path to financial independence and post-divorce success.
But how do you do that? While there isn’t one specific approach that will work in all instances, we hope this post will give you some ideas of what you can do to ensure that you’re on stable financial footing moving into your next phase of life.
Tips for protecting your post-divorce financial stability
We know you have a lot to think about as you navigate your divorce, but considering the financial implications of the process is crucial to your success in the years to come. With that in mind, as you head into your divorce, consider doing the following:
- Taking a full inventory of assets and liabilities: Since you’ll be entitled to your fair share of the marital estate, you’ll want a full understanding of the assets that will be subjected to the property division process as well as any marital debts that may need to be divided. The best way to do this is to inventory everything. That can sound like a monumental task, but it’s an important one that you can complete over time. As you’re doing so, be sure to mark assets that you think you individually own and may be removed from the property division process.
- Creating a post-divorce budget: You’re going to be in a difficult position to negotiate the divorce settlement you need if you don’t understand what your post-divorce life is going to look like. A post-divorce budget can help you here. By being honest and realistic with yourself, you can see where you might struggle and where you may need additional support. This can be a powerful tool to take the uncertainty out of your future, thus relieving some of the stress you’re feeling, while also giving you something you can use during negotiations to advocate for more of the marital estate or even spousal support.
- Finding things to cut: Let’s be honest. You might have to let go of some of the luxuries that you enjoyed during marriage to get by post-divorce. That’s okay. Just look closely at your budget and figure out what you can relinquish in exchange for greater financial stability and freedom. You might find the process of cutting out these expenses liberating.
- Rebuilding your credit: The credit that you enjoyed during your marriage may not be available to you immediately after your divorce. You might have to spend some time building your own credit worthiness, but it’s certainly doable with a balanced budget and smart use of credit.
You can and will get through your divorce
It may not seem like it right now, but you can and will get through your divorce. The success that you’ll experience afterward, though, will depend, in large part, on how you navigate the legalities involved.
To protect your interests as fully as possible, then, develop the best divorce legal strategy possible under your set of circumstances.
If you’re unsure of how to do that, then simply discuss the matter with your attorney so that you can develop a plan that you’re comfortable with and that sets you up for the future that you want.