How will divorce affect you financially?
Many people going through a divorce will feel emotional, but the financial issues of a divorce may weigh heavily on a couple. There are financial issues that should be considered when you are going through a divorce and knowing what they are ahead of time may prevent financial hardship going forward.
There are a few financial things to keep in mind during the divorce process and they include:
- Be careful not to live on your credit cards. It may help you in the short-term, but if after the divorce you are left with high credit card balances, you could put yourself at risk and negatively affect your credit. If you are short on money, look into borrowing money from friends or family until the settlement from the divorce is finalized.
- Pick and choose your legal battles. If your divorce is contentious and involves fighting over everything, your legal fees could skyrocket. It's best if you can view the divorce as dissolving a union and try to keep your emotions out of it. If there is something worth fighting for you should do it, but fighting over insignificant items just to get the upper hand, is not worth it.
- When going through the divorce process make sure that you can keep up with the mortgage or rent payments. If you believe you could be short, make sure your attorney is aware of this so that they can work with you to make sure that your family is financially stable during the divorce proceedings.
- Make sure you choose the right divorce attorney for your situation. Choosing the right attorney means that you will get the best result. If you have to change lawyers in the midst of the proceedings, you will end up paying more just to get them up-to-speed on your case.
- Make sure you understand where you will be financially after the divorce. Create a budget and stick to it. It is best to be prepared about your financial outlook and you'll avoid any surprises.
While the decision to divorce is never easy, if you are prepared for the financial changes that a divorce initiates, you should come out happier and more secure after it is all said and done.
Source: Huffington Post, "Top 5 Ways to Ensure Financial Security During your Divorce," Brendan Lyle, April 23, 2012