Money matters when divorcing, just as it does in the rest of your life. While it is certainly not the most important thing, having enough money will make your life a whole lot easier, and wasting it, or losing out on opportunities to get what you should, will make life more challenging.
Here are a few measures you can take to increase the chance you emerge from your divorce in as healthy a financial position as possible:
1. Understand your expenses
If you find yourself short at the end of every month now, it is likely to be even tougher when you lose the contribution of your spouse. This applies whether it was the financial contribution of their salary to the household budget or the time they put into the house and children that allowed you to spend more time earning.
Soon you will be in total control of your expenditure, but you will likely have less to spend, so understand where your money is going now and where you can cut spending. Don’t forget to account for the immediate expenses, such as divorce fees, either.
2. Separate your finances
Once you decide to divorce it is wise to start separating your finances immediately, otherwise, you are each at risk of the other harming your finances or credit scores. For example, take out individual credit cards and bank accounts and close the joint ones. Do be careful here. Firstly, it won’t always be possible for you to close accounts without your spouse’s signature. Secondly, you don’t want them to accuse you of cutting them of from funds.
3. Gather all financial documentation
Negotiating or litigating for certain financial outcomes is an essential part of a divorce. Having evidence to back up your claims as to what assets exist and what you need makes for a much stronger case.
Seeking legal guidance to understand your entitlements and those of your spouse can help you set realistic expectations and increase the chance you walk away with a fair settlement.