Blog posts tagged in divorce and finances
Whether you ask a neighbor who is divorced or a financial expert who specializes in this area, they will tell you one thing for certain: Nothing turns your financial life upside down quite like a divorce. Even those who live very modestly, with little to no sizable assets, can expect some level of financial upheaval. You may be searching for a new place to call home, or struggling to find a way to afford the home you currently live in, all while doing so without your ex’s financial help. All too often, divorcees see a major portion of their savings and income go right out the door once the divorce is underway, as settlements take root and assets are divided.
Add any debts that you have accumulated during – or since the end of – the marriage, and suddenly your financial life might appear to be in shambles. As grim as this can seem, there is always hope for a better, brighter financial future, especially when we educate ourselves and are open and willing to make changes moving forward.
Facing an impending divorce can raise multiple concerns for both parties, especially when special circumstances arise that can further complicate the process. Arguments over parenting time or the inability to agree on other crucial issues, such as property division and alimony, are just a few examples of problems that often surface between a divorcing couple. Financial matters, in particular, are a major landmine for many separating spouses, as months or years of shared investments, purchases, and accounts have accumulated and must now be divided. Monetary concerns do not necessarily have to increase the tension between you and your spouse, however. Preparation is key to sorting out financial decisions during your divorce.
Creating a Foundation for Financial Negotiations
Even if you have not had the time to take stock of your finances before pursuing a divorce, there are still plenty of steps you can take that can provide a clearer picture of what you are working with, what your challenges will be moving forward, and how you can stay organized throughout the divorce process. The following tips can help tackle monetary issues that may be associated with your divorce:
Create a financial snapshot - The most vital part of addressing finances in a divorce is taking stock of what you are working with in terms of accounts, debts, and investments. Create a list of every account you have - both joint and separate - and total up your assets and debts. Do not forget to include any insurance policies you share, as well as real estate deeds, wills, or trusts. Initially, it may be overwhelming to take a hard look at the bulk of the financial obligations and investments you and your spouse share, but once you have taken inventory, you will have a starting point to work from....