Divorce is difficult. In addition to the variety of emotions you experience as you navigate the process, divorce can also directly challenge your finances. If you do not enter into the divorce process with control of your emotions and an understanding of your financial situation, you might find that the divorce jeopardizes your financial future.
Fortunately, by following some helpful strategies, it is possible to navigate divorce and leave your finances in good shape.
Establish a Budget for After Your Divorce
Returning to life as a single person means that you will likely be required to pay for several new costs on your own. As a result, it is a wise idea to understand upfront what your monthly costs will be. It is critical to establish a budget for yourself, especially when the other spouse has always been responsible for taking care of financial matters. Begin with the basic daily necessities before you begin planning for larger things.
Take Control of Costs During Divorce
Like a variety of other substantial life changes including births, relocation, and deaths, divorce results in people paying numerous new costs. Make sure you have allocated money that will be necessary for the divorce process itself as well as what might be necessary for additional complications that might arise.
Familiarize yourself with the divorce process so that you can anticipate exactly when various costs will arise. This way, you will understand your options and not be surprised if the process takes longer than you might anticipate.
Fairly Divide Marital Assets
Dividing your assets in a divorce is a complex process. Not only is it challenging to sort property from marital to separate property. During this division process, it is important to be mindful of the tax repercussions that property division might have. Consider the tax implications of property that you are looking to receive. For example, for individuals who fall into a higher tax bracket, it might be a better idea to receive property with fewer tax implications.
Take Charge of Debt
If you and your former spouse have debt, it is a good idea to eliminate it completely before finalizing the divorce. If you are beginning a new and more costly living situation, you can end up carrying an additional amount of debt.
If a debt cannot be paid off before divorce and becomes the responsibility of only one spouse, the other spouse should be granted the ability to make sure the debt is repaid. In many cases, this type of debt monitoring is agreed on as part of the terms of a divorce.
Speak with an Experienced Divorce Lawyer
The divorce process is full of challenges, but an experienced divorce attorney can help you navigate them with ease. Contact a knowledgeable divorce attorney at Vayman & Teitelbaum, P.C. today to schedule a free initial consultation.