A divorce can be devastating and negatively impact both spouses. Whether you are the husband or wife, it is likely that you will experience some financial problems after a divorce. If your finances are not managed properly, the situation can be exacerbated and made even worse. It is important to remember that a divorce can cause more than just emotional trauma, in some cases it can lead to financial devastation. Here are a few tips that will help you avoid some of the most common problems and allow you to flourish after a divorce: Do you want to learn more? Visit Alberta Divorce Finances
- Before you file for divorce make sure that it is really, truly your best option and that reconciliation and building a happy marriage is simply not a possibility. Consider not just the emotional issues but also the economic and financial considerations for your post-divorce life. Financial ruin can be the result if you don’t carefully consider your true situation post-divorce.
- If you have suffered abuse from your spouse such as verbal abuse, physical abuse, and mental abuse, you should document those specific events for potential use in your court case. These issues can, in certain jurisdictions, make a significant difference in the outcome of your divorce case. If you have children and are likely to get primary custody it is your right and duty to seek and obtain child support to help cover the expenses of raising children.
- Understand the importance of objectively considering your post-divorce circumstances, especially your financial situation. Create a spreadsheet and realistically look at how much money you will need each month to cover your expenses. This may require making some assumptions, like how much your housing and utility expenses will be in a new residence. Then compare these expenses to your typical monthly income, as well as any child support you expect to receive, and see how your monthly income compares to your monthly expenses.
- It is very common for people to require lifestyle changes after a divorce in order to financially survive. One helpful thing to do when planning for a divorce is to start saving cash in a bank account in which you are the sole account holder (in other words, your spouse cannot clean out the account). This money can be of great assistance during the divorce process if you find yourself short on funds. That is not to say you should “hide” the money, you should let your attorney know of its existence and never deny that you have it.
- If possible you want to reduce credit card debt and other liabilities prior to divorce. It is also important to establish your own credit, if you don’t have credit available to you already. As I mentioned above, you want to open your own bank accounts so you do not have to worry about your spouse and emptying out all of the accounts unexpectedly and leaving you without any available cash.
- A detailed plan created prior to pursuing a divorce case is extremely helpful in addressing and avoiding any long-term financial issues. If your standard of living is going to decrease post-divorce, you want to know this as early in the process as possible so that you can plan and act accordingly. Talk to divorced friends who have been through the situation and can advise you as to how to best cope with the post-divorce finances.
- Find out as much as you can about the assets that you and your spouse own. If you are the spouse who has handled the finances during the marriage, great. If you’re not, this will require some homework on your part. In order to get a fair property division in your divorce case you will need to be very familiar with what assets exist. This is an area where a qualified family law attorney can be of great assistance.
- If you are awarded real estate in the property division, make sure that any necessary deed transfers are completed along with your divorce. It is not enough that your divorce decree says that you’re awarded the house, there must also be a deed, recorded with the proper authorities, which reflects your sole ownership of that property.