Dealing with a divorce is never an easy thing to do, and one of the things it can affect significantly is your finances. You may be moving from a double income household to only one, or perhaps you will be making regular payments for child support. The divorce itself can be expensive too, with the cost of lawyers and mediators. You might need to pay for childcare more often, and you may need to sell your home so that everyone can be housed how they need to. With all of this going on, you may be worried about staying afloat. Read the advice below to help you keep your finances organized during and after your divorce or separation.
The Cost of Divorce
Divorcing or separating can be an expensive process, even before you start considering how it changes your household income and expenses. You could be paying for the cost of a lawyer, a mediator and perhaps even a therapist for you or your children. Separating your finances from your ex-partner’s can be very costly, so any way that you can save will help. Naturally, if you’re able to be amicable and cooperate with each other, you can avoid having to spend money fighting it out. However, do ensure that you write your agreement down and sign it so you can make it a little more official.
Otherwise, you can employ a mediator to help both of you come to an agreement about your finances, which can be quicker than going through the courts. The cost will depend on how many sessions you need, so the faster you can come to an arrangement, the better. However, you may be unable to work things out using these methods and hire an attorney instead. This can take longer and cost more, but it might be your best option.
Except in very rare occasions, there’s no denying that the whole family is no longer living together. Whether you have children or not, you and your partner now need separate homes. It may be that the best option is to sell the home you shared so that your assets can be divided more equally. If you use a family lawyer such as Bannister Preston, they can give you advice about your finances and selling your home, as well as help with the divorce. Although selling your family home may not be what you want, it can sometimes be the best option for everyone.
Reorganizing Your Finances
After your divorce or separation, you need to rethink your finances. They’re likely to have changed, so you need to reconsider what you have coming in and what needs to go out. It’s a good idea to sit down and work out a new budget. What’s your income, and what are your expenses? You can find new ways to cut your costs and live within your means, even if it means having to change your lifestyle.
There’s no denying that divorce or separation is likely to have an effect on your finances. But if you know what to expect, you can prepare yourself better.