Financial considerations during and after the divorce process
Jan 27 2017 - Posted by On Behalf of the Lincoln Law Firm, PPLC, in High Asset Divorce, Tagged in high asset divorce
There is no doubt that divorce impacts all affected parties emotionally, physically and financially. Unfortunately, because no two divorces are exactly alike, there is no “rule book” that spouses can follow in the wake of a decision to divorce in order to guarantee that they will emerge from the process emotionally, physically with financially stability.
However, there are several considerations that individuals can contemplate and act upon in order to better ensure that their finances remain stable during and after divorce. And although financial stability certainly does not always lead to emotional and physical wellness, it can certainly help to facilitate these important priorities.
After deciding to divorce, it is generally a good idea to take stock of your income, debts, assets and other liabilities. You may or may not already have a solid grasp on the specifics of your financial situation. But taking stock with “fresh eyes” in light of your recent decision will almost certainly help you remain well-informed as you and your attorney work to construct a fair and stable divorce settlement.
It is also important to separate yourself from joint holdings, open your own lines of credit, look into the specifics of your credit report and remove your spouse as a beneficiary from any insurance policies, etc. This kind of paperwork shuffling can be time-consuming and mentally taxing. However, failure to attend to these details can cost you dearly down the road.
Finally, it is critical that you set a budget that takes into consideration your new expenses, debts, income level and housing situation. It is all too easy to fall into a pit of debt following a decision to divorce. Keeping an eye on your expenses and income can help you to avoid suffering financial challenges later on.