How to deal with the financial implications of a divorce

Divorce following a relationship breakdown is a difficult ordeal for so many different reasons, whether children are involved or not. While a lot is made of the emotional side: confusion, anger, anxiety and the like, it can also be extremely difficult financially. While a divorce means a lot more than money, protecting yourself and knowing your obligations are crucial.

One of the best ways to build wealth is marriage, and with some researchers believing that individuals would need a 30% income increase to maintain standard of living it’s no wonder that the financial implications can be so tough. So, with a standard of living drop imminent following how can you save money during and following a divorce?

  • Find the right advice – The very first thing to do is have a look at divorce lawyers and find one for your needs. Reputation should obviously come first and if you get the right team behind you a divorce can be quicker, easier and even cheaper through organization. Take a look around, ask for recommendations and figure out how you can come out the other side.
  • Communication – With your ex that is. This is imperative in making a divorce run smoother and cheaper. Figure out a plan of action and reach an agreement on your assets before getting too deep in the process. A fair settlement agreed ahead of a battle will not only help economically, but emotionally as well.
  • Take stock – A lower income and transition period cannot be avoided, but by understanding the assets you will be able to make immediate and medium to long-term plans. With this in mind, get the house valued, pension savings tallied up and figure out what you will need to stay afloat through these turbulent times.
  • Do it yourself – Having a hands-on approach will give you focus through the divorce. Make sure you copy paperwork, put your maths to the test by doing calculations, fill out court forms and know what hours your lawyer should be billing for.
  • Therapy – Some may suggest that this is an unnecessary expense. That’s not really true at all. You need your lawyer legally, a financial planner economically so having someone to help your emotions can be critical. Don’t let raw or bitter feelings undermine your attempt for the right settlement for both people.
  • Budget – Possibly something that you did with your partner previously, but it is something you must carry on. With less money floating around they cuts have to be made and this is the best chance you have in terms of sticking with this.

Getting a handle on your finances is tough at the best of times, during a divorce is no different – if not more difficult. The best way of dealing with the financial implications is to find the right people to guide you through the process. You have obligations through this and the more determined, forward thinking and objective you are then the better result you will have during the process and after the settlement.

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