Whether you are successfully making ends meet or living a comfortable lifestyle, nothing can change your financial stability more drastically than a divorce. Couples who divorce often find themselves trying to stretch half the income over double the expenses.
As emotionally difficult as a divorce can be, you may find that financial struggles can follow you for years after the judge signs the final papers. However, it does not have to be this way. If you take some proactive steps in the months before and during the divorce, you may find your financial situation more manageable as you make your way through the early years of your post-divorce life.
Revise your budget
Rather than assuming your income and expenses will remain the same after your divorce, you may have to take a hard look at what you will be facing when you are single. You might find that your situation is particularly complicated, for example if you have been out of the workforce for most of your marriage, still have children at home or are nearing retirement age.
Don't put off the reality check too long. You will want to create a workable budget based on the income you expect after the divorce and the expenses you will have. Consider additional expenses that result from being single. Will you need to buy a car? Where will you live? How will you pay for health, auto and home insurance? These are just a few expenses to calculate along with your food and other bills.
Make the most of your divorce
The outcome of your divorce will have an impact on your financial situation. You can control certain financial issues such as these:
- Finding the most cost-effective method of divorce and using your attorney's services wisely
- Understanding your rights and fighting to get your fair share of marital assets
- Learning as much as you can about the tax ramifications of any retirement funds, investments or other assets that are on the table for division
- Making sure you do not walk away from the marriage with debt you do not deserve and cannot afford
- Taking an honest assessment of the house to determine if you can afford to keep it
- Working to ensure you get a fair child support order
Once your divorce is final, you want to make sure your financial documents reflect that change. This includes removing your spouse from any joint accounts and changing your estate planning documents and passwords. With a skilled Colorado attorney, you can step into your new post-divorce life with confidence and peace of mind that your financial situation is in good order.