For the most part, divorce isn’t an easy process to go through. One aspect that truly can add stress to divorce is finances. No matter your age or financial situation, divorce can surely shake things up and disrupt the current flow of your finances. During a divorce, both parties are trying to protect the financial security of their savings, assets, investments, inheritances, income, and more.
Whether the divorce is amicable or not, a lot of discussion and planning can prevent both sides’ finances from becoming a mess. Also, with a set plan in place, the process will be a lot less stressful. Here at Barkus Law, we wanted to share some tips to help you manage and plan your finances throughout this potentially rocky and unforeseeable process.
Separate yourself and understand your own personal finances
- Set up an individual bank account.
- Take a look at how much money and debt you have individually.
- Create a new budget. Your lifestyle and budget are most likely changing and your new habits need to realistically reflect that change. Live within your means.
Determine common bills and other payments
- Joint debts can be paid through a joint account until the divorce is final (unless otherwise discussed and determined differently).
- Devise a plan with the other parent to save and pay for the children’s college or post-high school educational training.
- It is helpful if the parent who is paying child support has life and disability insurance, so in the worst case scenario, payments won’t stop. Some employers offer these benefits at little to no cost.
Assess the assets
Figure out who will be responsible for each asset and what needs to be sold or exchanged for cash or other assets.
Look for more Income
- Since your income will most likely be changing, it’s not a bad idea to look for additional income like a second job, more hours at your current job, freelance work or a job that allows you to work at home while still watching your children.
- Meet with a financial advisor to start knowing the best ways to manage your money during and after the divorce.
- Find out if you’re eligible for public benefits or tax breaks because of your change of income.
Looking for financial guidance through your divorce? It’s best to consult a lawyer. A divorce lawyer can help guide you through handling and figuring out assets, income, rentals, mortgages, debt, payments, and more. Barkus Law offers services in divorce, mediation, alimony, child support, prenuptial agreements and other family law matters. For more information or to set up a consult, click here. Barkus Law serves Broward County and other counties in South Florida.