One thing many divorcing couples think long and hard about after how a divorce will affect their children is how a divorce will affect their finances. Will they be able to pay all of their expenses?
If finances were a big part of the divorce to begin with, then it is likely going to be about the same after the divorce is final. You will need to understand how the divorce will affect your family’s finances. If not, then you may need to have someone explain the changes in your finances. This could be a friend, a family member or even your divorce attorney.
First, you’ll need to gather all paperwork relating to your assets, debts and accounts. If you were not the person in charge of paying the monthly bills, then you should have someone explain your finances. He or she can help you understand what your current financial needs are, as well as what you might need in the future.
A budget is important, too. Without one, you could end up missing out on paying this bill or that bill. List everything you can remember, such as rent, transportation, utilities, groceries, school costs, health insurance and haircuts. This list is by no means all-inclusive. As the days pass following your divorce, you will likely begin to remember more bills and expenses that you didn’t remember the first day.
You should also consult with someone knowledgeable in tax issues, especially if you have children, individual retirement accounts, pensions or more. Finding the way to access your money when needed without paying a huge tax penalty may be important until you are sure you are on firm financial ground.
Divorce is a difficult time and the financial toll it can take can be tremendous in many cases. Your attorney, financial planner and tax advisor can work to ensure your finances are secure after your divorce.
Source: wotv4women.com, “How to assess your finances post-divorce,” Gail Saukas, March 15, 2017
