How to Regain Your Financial Footing After a Divorce
Divorce is especially difficult for single-income families. While any divorce can come with financial setbacks, the process can be extra detrimental when one spouse is a stay-at-home parent, or does not contribute financially for some reason.
The time immediately following your divorce will probably be the most trying. Your separation and divorce may be planned, but finding interim housing, relocating your children, figuring out what to do with your pets – these issues often leave divorcees scrambling for answers. Additionally, they require money.
To avoid unnecessary debt or overdrawing your accounts, keep track of your spending and try to anticipate any future costs. Think ahead, if possible, and record all of your expenses related to the divorce.
Be open and honest about your finances during the divorce process so your lawyer can pursue the settlement you need. During the divorce process, your spouse’s lawyer will scrutinize your financial portfolio. Additionally, your attorney will gather relevant information about your spouse’s income and spending. Although it may seem harmless at the time, concealing assets from your spouse is never a good idea, and can end up costing more in the end.
Maintain Control of Your Financial Situation
Your post-divorce bank account may not offer the same leeway as it did while you were married, but this doesn’t mean you can’t take control of your finances. This might include:
- Smart, consistent budgeting
- Liquidating unnecessary assets
- Seeking professional financial advice
- Understanding the financial impact of your divorce
- Cutting back on unnecessary spending
The term “unnecessary spending” can mean something different for everyone. Depending on your unique situation, cutting back could mean eating out less or pausing your kids’ dance lessons for a few months. Until you comprehend every aspect of your new budget, it is best to avoid spending money unless you absolutely must.
Think About the Future
Reestablishing financial security can take time – even a few years, if you need it. Although the period following your divorce is the most volatile, financially speaking, it is important to keep your long-term money goals in mind. Especially retirement. Avoid sacrificing your 401K or other retirement accounts to divorce; you may avoid a financial obstacle now, but only at the expense of your future security.
If you’re considering a divorce, the Oregon divorce lawyers at McKinley Irvin are prepared to help you make the best legal decisions for your unique future and your family. Reach out to a lawyer from our firm at your earliest convenience to schedule an appointment.