Whether your divorce comes as a surprise or you initiate it, it can make you feel like your world is turning upside down. When it comes to finances, it is vital to manage your money effectively during and after your divorce by adjusting to your new financial reality and resources.
Navigating money after divorce
During your divorce, make sure you take inventory of everything you own and owe. You want to be prepared for after the divorce.
Once everything is settled, you may end up with more or less than what you expected, so be careful when making large purchases during the divorce process until you know what your financial situation will be.
Creating a new budget
A new financial situation calls for a new budget. Now that your bottom line is changing, you need to reassess your priorities, including where you want your money and your income to go. Thinking of this ahead of time will be helpful as you adjust to your new post-divorce life.
Understand your responsibilities and obligations
Often, people going through a divorce forget to account for new financial obligations they will have after the divorce is over, such as child support, spousal support or alimony.
Ensure you talk with your attorney to consider any possible responsibilities you might have after the divorce and for how long those responsibilities will last.