How to Survive Financially During and After a Divorce
Usually, you will get married with the expectation of having found your “one”, without contemplating the possibility of getting divorced someday. Regrettably, though, divorce rates are expected to continue climbing. Divorce has an impact on all areas of your life. It tends to take a toll on your emotional and financial health, which can result in significant challenges.
People always focus on the impact a divorce might have on their emotions with complete disregard for the financial consequences they might face. But be aware that whether you're struggling through, or have just finalized your divorce, there are several actions you can take to minimize the negative effects on your finances.
Consider these options to help you financially survive a divorce:
1. Come to an agreement on how to divide your assets. A particularly difficult thing in any divorce is the decision of who gets what. You and your spouse both may have an economic and emotional investment in almost everything, from the house to that nice car you acquired together.
· It really is beneficial to avoid having the lawyers get involved in the process. Though you might consider one if you two are not able to come up with an equitable distribution that suits the interests of you both. Just keep in mind that once the legal system is formally involved, the process is much more expensive and financially and emotionally draining.
2. Try attending mediation. Mediation can be a money-saving alternative to the courts. This way, everything is a process of give and take, agreed upon under the guidance of an unbiased 3rd party. You can opt for methods of dividing your assets that are financially best for both of you.
· Actually, in the state of Florida, mediation is a requirement for all contested matters, as judges require you to attend mediation prior to scheduling a final hearing.
· For example, in the case of the marital home, it's usually better to sell it and divide the proceeds (money) however you two believe is fair to both of you. If the house needs fixing, you can also divide repairing costs to increase the market value, and therefore, the equity.
After the Settlement
Coping after the divorce is never easy. The unhappy fact is that, once the divorce is settled, you will most likely be less well-off financially than you were before the divorce.
To strengthen your financial picture in the aftermath, try these strategies:
1. Review your financial documents. Assess what remains and be sure that every little thing is truly concluded. Be certain you:
· Cancel any joint bank accounts.
· Cancel any joint credit cards.
· Make sure all your bills are under your name alone; such as the phone plan, the internet, the electrical bill, and so on.
· Make whatever changes you need to your life, car, and health insurance and any other policies.
2. Take action to live within your means. If you were the main breadwinner in the relationship, you may have to make monthly alimony or child support payments. And if you didn't have the greater salary, you will still have less total income than you did previously.
· Rather than slide further into debt, downsize your lifestyle, at least temporarily until you feel financially comfortable again. This may mean a smaller home / apartment or less expensive vacations. It may mean a much more significant change, depending on your ability to earn income now.
3. Establish your necessary income. Do what it takes to get back on your feet. Network with your family and friends to let them know you're looking for a job or an opportunity to make extra income. Network on social websites as well if you feel it is going to benefit you.
4. Make a plan. You'll need to plan your saving, investments, and budget. If you were not the primary earner, you will have two challenges: replacing the lost wages and rebuilding your credit. The good credit you had as a couple may not be as good after the divorce.
One of the only advantages of a divorce is the ability to drastically change your lifestyle and spending habits. This is easier after divorce because it doesn't require agreement from both parties.
Take some time to educate yourself further on personal finance to help you get your finances back in shape. Start today by applying these tips and you'll bounce back sooner than you ever imagined.