Divorce not only poses mental and emotional stresses, it also threatens your financial security. That is, if you’re ill-prepared. However, there are ways you can have financial security after divorce. Here are simple guidelines to follow.
Seek an Affordable Legal Counsel
While it’s okay to have a no-lawyer divorce, it can be costlier in the long-run. To ensure you get professional advice and a smooth-sailing agreement, hire a family attorney who isn’t only after your money. Maybe you can ask friends for recommendations, or talk to a lawyer you already know.
Prepare Your Financial Statements
It’s better to prepare all financial statements in advance. That way, you’ll have an idea of how much you and your spouse are worth (community assets) in advance. You can create financial statements using downloadable software or ask an accountant to do it for you.
Forecast Your Expenses
You must have a picture of your life after divorce, money-wise. How much do you need for grocery, rent, mortgage, and other specific expenses? Estimate your cash flow after divorce, as a single person (or single parent). This helps you create a budget to help you through life after divorce.
Hedge against Financial Risks
You need to have back up when things go rough. If you’re relying so much on your spouse financially, you need to find ways to become independent. While you may receive alimony, it’s always better to have income of your own. Also, secure adequate health and life insurance for yourself.
Find Ways to Grow Your Money
It can be tempting to spend a lot of money on alcohol, wild parties, beauty salon, and expensive stuff just to forget everything. But it can be more stressful and disappointing when you wake up one day and find you’re broke and in debt. Budget your money frugally, save some, and when you can – invest some. That way, you can truly become financially secure after divorce.
Develop a New Skill or Hobby
Don’t hesitate to spend money on learning a new skill. This is a smart move as this increases your credential at getting a job or starting a business. Also, it keeps you occupied and productive, so you don’t dwell on past heartaches. When the time comes, you are more than ready to set out as a financially secure single person.