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Wednesday, February 3, 2021

Navigating Financial Uncertainty During a Divorce

Divorce can be pricey. Divorce can wreak havoc on finances. Sometimes things get really rough for people post divorce (though it isn't always the case- sometimes after divorce things really improve for people financially). Regardless of that, its a time of upheaval and its very important to make the right decisions financially when going through divorce. Here's some tips from a reader on how to navigate this difficult financial situation.


Unfortunately, 50% of all marriages in the United States end in a divorce. Although this number is devastating and heartbreaking, it is the reality that we live in. With this in mind, it’s important that families suffering from a divorce have the resources they need to navigate the emotional and financial burden of this decision. In this article, we will share five ways that families can navigate the financial uncertainty of a divorce.

1. Work With the Right Lawyer

Divorce lawyers can be extremely expensive. With the time that must be spent navigating the nuances of a separation, you can rack up an expensive attorney bill fairly quickly. When you choose the right lawyer, they will understand the financial and emotional stress that individuals are facing during this season of their life. The attorneys at Manassa Law are equipped to care for clients in order to help keep the situation as smooth as possible.

2. Plan Ahead

As you begin to file for a divorce, make a financial plan for the next two years. What financial responsibility do you owe to your partner? What do you have budgeted to spend on an attorney? By planning ahead, you will be prepared to handle the ins and outs of your expenditures. If you need temporary assistance in order to complete this process, there are short-term loans available to be used as you wait for an anticipated paycheck. Since this process is expensive, determine the areas that you can cut back on for the upcoming months until the legal proceedings are finished.

3. Separate Income and Expenses

As soon as you and your spouse decide to separate, create two different bank accounts. When your income and expenses are being handled separately, you will have less conflict involving the daily changes in your financial statements. As you work with your attorney, find a fair way to manage shared debt, upcoming expenses, and large assets. Although you may no longer get along well with your partner, you must come to a mutual expectation that you will both make the fair choice in financial decisions. If you leave joint credit accounts open for too long, you will likely get into additional conflicts.

4. Make All of Your Decisions Upfront

Divorces can be messy. Even if the two parties remain civil, there are many tense subjects that could easily confuse a situation. To avoid expensive endeavors and stressful situations in the future, make all decisions upfront. In the initial portion of the process, make decisions regarding health coverage, power of attorney, life insurance, and your will. Without these decisions being made, you can suffer greatly if an emergency situation occurs.

Summary

Not only do divorces cause negative emotions and difficult conversations, they can be extremely complicated from a financial standpoint. When two people cannot agree on financial matters, it can be hard to find a common round and maintain a solid relationship. Before the heart of the proceedings begin, make a decision to budget well and manage your finances so that you will be prepared well for your future.

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