Now is the time to get organised.
The financial element of getting a divorce is often the most difficult to handle. Money can be an incredibly divisive topic, particularly when it becomes charged with the emotions that are usually present when a split is taking place. If you are about to get divorced then getting clarity on your finances will be essential to ensuring you get a fair settlement, according to online broker Solution Loans – and to making the process as easy as possible.
Identify all your assets
Make a list of all the assets that you have and identify those that are shared and those that are your own. When divorce is on the cards some assets can go missing, or be claimed as shared when they are not. So, it’s important to have a very clear idea of who owns what before the negotiations begin.
Work out which expenses are shared
One of the biggest shocks after a divorce is the financial burden that has to be managed as an individual. Prepare yourself by looking at all your current monthly expenses and working out which have been shared by you and your partner. Note next to each one how much you’re likely to have to pay after the split so that you have a good idea of the increase in cost that single life could bring.
Prepare a budget for after the divorce
When you’re planning the next stage of your life after divorce, a realistic budget can help you to manage your finances and avoid getting into trouble with debt. Highlight all the regular expenses that you will have to continue to pay, as well as anything additional that will arise from the split. You will also need to account for the cost of the divorce itself and work out where the money to pay lawyers’ fees etc is going to come from.
Clear any joint debts
If you’re on good terms with your ex-partner then try to come to an agreement about paying off any smaller debts now and any expensive debt such as bad credit loans (find out more here). This will simplify things when it comes to the financial arrangements and give you less to factor in to a final settlement. You’ll also be able to avoid additional interest or fighting over who should make payments on outstanding debts (and incurring charges if no one does) if the divorce drags on.
Try to cut back
It can be tempting to go out and spend money when a divorce is being finalised, especially if you’re expecting a large financial settlement to come your way. However, the reality is that divorces always cost more than anyone expected and there is no guarantee of anything until documents have been signed. If you’ve got into debt or overspent then it will make it much more difficult to be fair when it comes to the financial settlement, as there will be so much riding on it. So, instead, try to cut back, keep costs down and wait until the divorce has been finalised.