A divorce can be a source of tremendous emotional strain. Contributing to this might be the effect that proceedings have on your financial life. You’ll need to find a way to pay your legal representatives, and split assets between you and your former spouse. Let’s take a look at how you might prepare for what’s ahead, and how you can protect your money.
Understanding Your Financial Position
To begin with, it’s worth knowing exactly where you stand financially. If you have the cooperation of your ex-partner, this will be easier. You might need an audit of the assets you hold jointly, like property, savings, and pensions. You can then factor in the money that you owe to creditors, and the money you were making as a couple. Once you know what you’re worth, you can talk about how you’ll split things.
Divorce courts in the UK are legally bound to find a solution that supports the needs of the children involved. The agreements you come to outside of court should reflect this principle, too.
Planning for a Fresh Start
A divorce is a chance to start afresh. Making a plan for how you’re going to be earning, saving, and spending is therefore worthwhile. You might compose a budget for the years ahead. If you stick to your old spending habits after your financial situation has changed, then you might put yourself at risk of going into debt later on. Getting outside finance in the form of a divorce loan might help you to meet your costs in the early stages – but be sure that you have a plan to pay it back.
Finally, it’s worth looking at the support services available. You might be going through emotional turmoil, and spending a few minutes here and there with friends, family, and professional counselors might be what’s required to help you through it.
Legal and Financial Advice
Given all of the costs involved, you might be tempted to fight your divorce battles on your own. But this creates considerable financial risk. If you don’t have legal expertise on your side, you might end up losing out when settlements are made. Good advice, in other words, can pay for itself. You might find that your lawyers, or financial advisers, can recommend a form of Alternative Dispute Resolution (ADR), via which you can get a settlement more cheaply.
Preparing for the Future Post-Divorce
After a divorce, you may need to tackle a few urgent financial priorities. If your credit rating has been poor, then you might have come to rely on your spouse for finances. Since this is no longer possible, your immediate goal might be to rebuild that credit rating. What matters is that you take stock of your finances, and that you have a plan for how you’ll handle money going forward. Fail to form such a plan, and you might find that your money ends up controlling you!
While you are navigating through the challenges of divorce, you should make clear financial plans, seek the right legal and financial advice, and make informed decisions. If you can do these things, you can prepare the groundwork for a stable and financially secure future.