It’s not easy to make practical decisions during divorce. When you go through emotional ordeals and court appearances, deciding on this and that is no longer a piece of cake. Still, powering through is essential since there are plenty of matters that require your attention.
Finances are the biggest ones. After all, divorce does not only signify the end of a relationship, but of a business partnership too.
For most of Albuquerque’s expert divorce attorneys, planning your finances after divorce should be one of your first steps. Apart from ensuring a stable footing in finances, it also paves the way for a seamless divorce for both parties.
To financially plan for your divorce, immediately taking big steps shouldn’t be an option. Instead, start small with the following:
Assess Your Current Financial Situation
It’s important to get the bigger picture as soon as possible. A number of divorcees, unfortunately, become too excited with the separation that they forget about their financial situation. They face the emotional turmoil head on, clueless to unopened emails concerning bank accounts and credit cards.
Delving into numbers sounds unpleasant, but it’s necessary. Create a spreadsheet and list down all of your combined debts and assets (e.g., bank accounts, student loans, car loans, credit card debts, etc.). Listing down everything on a chart gives a better view of your current financial situation. Add all the assets and subtract all the debts; you’ll end up with the marriage’s net worth — a necessary number during the proceedings.
Estimations Are Necessary
The finalization of the divorce calls for an even division of finances and possessions, which depends on the provisions made with the partner. Want to know how much money you’ll have after the divorce?
It’s simple: consider the net worth and divide it by half.
Income after the divorce depends on a number of factors: individual salary plus the alimony and child support one party receives
Separation of Finances
Divorce also calls for separation of finances as soon as possible. Even if you think most of it is your keep, starting earlier avoids costly strains between you and your ex-spouse. Consider splitting bank accounts or moving all direct deposits to a new account. If you don’t have a credit card, apply for one with your name on it.
Baby steps are necessary for a seamless divorce process. Spare yourself from more headaches by getting these done immediately.