The process of dissolving a marriage is never a walk in the park. During those emotional moments, your decision-making process can be severely hindered. As a result, you might end up making costly financial mistakes that may come back to haunt you down the road.
If the divorce is uncontested, both parties will reach an agreement regarding major issues like property division, child custody and support, alimony and other matters out of the court. In this case, the parties and their legal representatives negotiate the terms of their divorce with the help of other experts.
Here are important tips that can help you get your finances in order after the divorce.
Come up with a post-divorce budget…and stick to it
As soon as it is clear that you are getting divorced, it is important that you begin keeping tabs on your income and expenditure. Besides helping you draft your post-divorce budget, this will also assist the court when deciding how marital assets will be shared and how much you will be awarded in spousal support should the matter end up in court.
Divorce means more than just ending the marriage and going your separate ways. It also means that you may no longer have someone to share your household’s bills with anyone. Alongside your utilities and other expenses, be sure to take into account post-divorce obligations like child support and alimony when drafting your budget.
Avoid unpremeditated financial decisions
While it may make sense to adjust your will, life insurance policy and retirement plans as soon as your divorce becomes apparent, you are better off waiting until the process is finalized. Rushing to make adjustments before finalizing the divorce may be interpreted as an act of bad faith by your spouse, and this can hurt your case should the divorce become contested. If you are not sure about certain changes, be sure to talk to your legal counsel before making any step.
Even if it is uncontested, divorce is still a stressful and emotional undertaking. Find out how you can safeguard your rights and interests while dissolving your marriage.