Changing Finances After a Divorce

Finances After a Divorce

Divorce can seem like a daunting process for many people. There are various aspects to consider since the living arrangements, time with kids, as well as the relationship with family and friends,  are all affected. Also, finances are usually a primary concern as they can change drastically for one or both parties. However, there are significant preparatory steps that can be taken.

These are:

Open a Bank Account

If you and your spouse have shared funds, your spouse isn’t supposed to hinder you from accessing the funds in the course of the divorce process. However, divorces can sometimes get ugly, so it’s wise to have some emergency funds.

Better still, you will need all new accounts as you move on with life. You can use your debit card to make purchases if you don’t want your spouse to know of this move.

Have a Credit Card

If you have a combined credit card with your spouse, you’ll need to acquire one in your name. This will enable you to get a higher limit and will allow you to remain financially independent throughout the divorce proceedings.

Make Copies of Financial Documents

These may include tax returns, loan information, mileage plan statements, employee reimbursement accounts, credit card statements, insurance policy statements, and property appraisals.

 Also, while taking the proper steps to divorce, mediators will give you a list of what is required to assist you in dividing assets.

Create a Budget

You also need to come up with your budget of living expenses by listing everything you need. These may include mortgage or rent, property taxes, food, gas, car maintenance, school tuition as well as other fixed expenses for the children.

 A budget will assist your attorney in working out a realistic picture of what you need to live on your own.

Cut Down Expenses

Expense reduction should not be painful, and there are some easy steps you can take to help you do that without making significant changes to your lifestyle. For instance, you can look for firms with lower refinancing percentages for your mortgage as this will enable you to save lots of cash. In addition, you can change your mortgage plan from a short period to a more extended plan or downsize to a smaller home. There are also lifestyle changes that can be made, such as cooking at home more than eating out.

Income Generation

By bringing more cash into your household, you boost your financial standing. For instance, if you’re not working seek part-time jobs. If you are on employed, think of other ways of generating extra income during your free time or consider looking for another job if the one you’re currently doing doesn’t bring in enough income.

If you are not in employed you may be entitled to spousal support but consider how you’ll support yourself once the subsidy ends.

Seek Affordable Childcare

If you have young kids, it may seem challenging to go back to work due to the fear that childcare may be costly or your kids won’t be in a comfortable environment. However, seek practical solutions. For instance, if you have neighbors with kids, you can make arrangements to care for them in turns. Also, you can ask relatives or family members to assist in childcare.

Hire a Mediator

A mediator is a crucial professional to engage regarding assets, custody issues or property. A good one from the Long Island divorce mediation group will be able to assist you in curtailing costs and cooperating with your spouse to reach an agreeable settlement.

Consult a Financial Specialist

Consulting with a financial specialist working in the field of divorce is crucial as you work out a fair settlement. For instance, keeping that costly house may not be a viable long-term plan for you financially. Therefore, consulting a professional will help you to weigh and understand your financial options.