It’s natural to worry about what your financial picture will look like once your divorce is finalized. After all, the marriage dissolution process requires you and your spouse to divide marital assets and debts, separate out individually owned property and address other legal issues like child support and alimony.
And if those issues are improperly handled, then you could wind up on rockier financial footing than you want. That’s why it’s important that you know how to position yourself for post-divorce success. But how do you do that?
There are several strategies that you can implement. However, you need to consider those options well ahead of time so that you’re not left scrambling trying to find a way to protect your finances at the last minute. So, let’s take a closer look at some of the steps you can take now to protect your post-divorce finances.
Divorce strategies that protect your post-dissolution finances
It’s easy to feel like your divorce is spiraling out of control. But you can steer the direction of your outcome by being adequately prepared and zealously advocating for the outcome you want. Here are some steps you can take now to better ensure that your post-divorce finances are protected as fully as possible:
- Create a post-divorce budget: Uncertainty can be incredibly stressful during the divorce process, especially when it’s related to your finances. But you can eliminate some of the uncertainty by creating a post-divorce budget. This will give you a clear picture of what your finances will look like once your divorce is finalized, helping you identify where you need to cut costs, try to increase your income and secure more of the marital estate or obtain spousal support. Be realistic when you create your budget, though, so that you know what you need to advocate for during your divorce.
- Develop an emergency fund: Unexpected issues can come up during divorce or shortly thereafter. If you don’t have an emergency fund built up, then you could be left in a dire financial predicament. So, start tucking some of your money away now. It’s best to tell your spouse of your intent to do so, though, so that you’re not later accused of trying to hide marital assets.
- Open your own bank account: You’ll need some independence as you head into your divorce. One way to secure that is to open your own bank account. This will allow you to put your own money away but avoid withdrawing money from a jointly held account until you can discuss the matter with your attorney. Again, you don’t want to be accused of financial wrongdoing in your divorce case.
- Know your goals: Although you’ll have immediate financial needs once your divorce is finalized, you can’t overlook your long-term financial goals. Once you pin those goals down, you’ll have a better idea of what you need out of your divorce to put you on the right trajectory to reach those goals. This can be especially true when considering retirement assets.
Ready yourself for your post-divorce life
Your life is bound to significantly change once your divorce is finalized. What that life looks like is up to you. Although there may be certain aspects of your marriage dissolution that are outside of your control, there’s also a lot that you can do to effectively maneuver the legal issues at hand to secure the outcome that you want. So, if you’re on the brink of divorce, then now is the time to start developing your strategy. Hopefully then you can rest easy knowing that you’ve done everything possible to protect your interests.