Getting a divorce can have an impact on so many different aspects of your life. Your relationships, living situation, social circle, and parenting role are all made to undergo dramatic changes.
However, it is your financial state that is often affected the most. That being said, there is every chance that you might come out of your divorce financially better off. So, let us discover 3 financial matters that you can sort out now to help you to get through your divorce successfully.
Finding a Divorce Lawyer
The cost of finalizing your divorce can vary dramatically depending on your financial situation as well as the lawyer that you hire to work on your case. Of course, when choosing a lawyer, you must try not to base your decision on price alone. Your choice should instead be based on the legal strategies and methods that your lawyer can use to get the most favourable outcome for your case. Nonetheless, it is undeniable that the cost of hiring a divorce lawyer is an important consideration for both before, during, and after you and your spouse decide to split.
Although some divorces cases can be worked out in minutes, if you own a lot of assets or companies, or have a more complex financial situation, then it is likely that hiring a leading law firm is going to be necessary. In these instances, finding a lawyer that understands finances is essential. On the other hand, if your marriage has been relatively short, and if you have no children, or do not own real estate, and are not going to be dividing retirement plans, an affordable solo lawyer might be all you need to get your divorce finalized. Above all, the best divorce lawyer for your case should be able to dedicate sufficient time and effort towards achieving your legal objectives in a cost-effective manner.
Create a Budget
Having decided to contact a divorce lawyer, now is the time to take an assessment of your lifestyle needs. In most divorce cases, there is a chance that you will no longer have the same income level as you will now be dependent on one income and not two. Correspondingly, it is important to determine any changes that need to be made so that you can continue to pay your bills, save money, and recover from the potential financial fallout of your divorce. Take stock of your income and savings and work out how to manage your newfound freedom.
If you do not already do so, it can even be helpful to research new ways to save money. From shopping at thrift stores for clothing, to clipping out coupons, to looking at sale items in the grocery store, there are a surprising amount of things that you can do to reduce your outgoings while still living your life to the full throughout your split. Try to resist any impulse buys and consider using grocery pickup apps or online ordering for days when you are busy handling the paperwork side of your divorce.
Reassess the Needs of Your Beneficiaries
Getting a divorce can be particularly difficult for any of your financial dependents. Therefore, it is important that you and your spouse take steps to protect their interests. For example, no one likes to think too much about no longer being around to look after their children but getting a divorce can be an opportunity to establish powers of attorney. Establishing financial and healthcare powers of attorney ensures that your chosen advocates are in place and that the expense of guardianship can be avoided if you were to become incapacitated.
You might also need to look at your retirement accounts, life insurance policies, and any bank accounts that transfer upon death. If necessary be sure to change any beneficiaries to cut out your former spouse. Divorce can be thought of as an opportunity to start over, so evaluate your legal documents and correct these with new information. You do not want to run the risk of unintentionally giving assets or rights to the wrong person. Moreover, editing your estate plan can ensure that your children or any other beneficiaries will be compensated according to your wishes.
Ultimately, getting a divorce can be a unique opportunity to adjust your finances. By carefully planning for the future, you can avoid getting into financial difficulty throughout your divorce and into the future.
As part of the divorce process, you might be required to use your premarital agreement. You can learn more about the financial liabilities involved in marriage by checking out this guide to negotiating premarital agreements.