The time before you finalize your divorce can be particularly challenging, and you are bound to have questions. Where will you live? Will you be able to provide for your child? As you begin your new life in a single-income household, will you have the money you need? Will you lose most of your savings during property division?
Many of your questions may be about protecting your finances during and after your divorce. While the future of your finances can be at risk during your divorce, it is possible to end your marriage and protect your financial health.
Take time to consider the fate of your family home.
While many divorcing couples want to maintain their ownership of the family home—especially if they have children who have spent their young life in that house—it may not be the best financial decision. Keeping the family home often means sacrificing a significant portion of your savings in the process. Keeping your family home may be an option, but it is essential for couples to carefully consider that home’s value as well as the cost of the mortgage, insurance, taxes and other costs of home ownership.
Don’t ignore your marital debts.
Many people consider their assets in property division—their house, their retirement savings, their bank account and more—but it is just as important to consider their marital debt. The court will probably determine that the debts that you acquired during your marriage are jointly owned, even if they are in only one spouse’s name. This means that you may receive a portion of your spouse’s debt in a divorce.
Be sure to establish a new financial plan.
You have many new concerns when you get divorced, and it is essential to create a plan for how you will handle your monthly expenses. Creating a budget can help you plan ahead and ensure that your individual income, whether or not the court orders spousal support, will be enough to meet your needs.
If you want to protect yourself from financial challenges after your divorce, speak to an experienced family law attorney. They can help you create a legal strategy that supports your needs in your divorce and safeguards your financial future.