Researchers say only 50% of marriages stand the test of time and the other 50% end in divorce. Divorce is a complicated issue, mentally, emotionally, and financially. Unfortunately, no two divorces are the same, hence there is no tailored advice that can help you through all the challenges of a divorce. There are, however, certain things that you can do to ensure that you are not in a financial mess.
Cost of a Divorce
The cost of a divorce depends on what type of divorce you have. You can either have a contested or uncontested divorce, and the former can be quite costly. One of the most expensive divorces in the world had an estimated cost of about $2.5 billion. A very cheap divorce can cost as little as $500.
Most couples usually spend around $15,000 on divorce expenses. Some expenses include:
- Attorney fees
- Court costs
- Tuition for Parent education
- Mediation costs
To ensure that your divorce doesn’t leave you in a financial wreck, consider the following tips:
Seek Financial Advice
If your partner was the one handling all the finances when you were married, it might be time to educate yourself before you are left to handle things on your own. Even if you were the one doing all the numbers, divorce is unlike anything you might have handled before hence you will still need to seek financial guidance. Before you file for divorce, look for a financial advisor and get some pointers. If you have already started the proceedings, find one as soon as possible.
Divorce is a tricky procedure, and you will go through a serious financial transition. It is advisable to hire asset management services. Research shows that 74% of people who use asset management services are going through some form of financial transition.
Take Stock of Your Assets
When you are planning to file, calculate how much money you have on you, in your savings, investments, and in equity. Also, consider your loans and debts and all the monthly bills you pay. This will help you get a clearer picture of whether you will be able to manage everything and still come out financially sound. It will also help you come up with a new budget.
During the time you are dealing with a divorce, it is advisable to squirrel away as much money as you can. Do not spend like it’s the end of the world, if anything it’s another beginning. The money you save now by living on a tight budget will be greatly helpful in the near future.
Recall Whose Name Is Attached to What
When divorcing, find out where your name is attached. This applies to assets, bank accounts, loans, and investments. If you are not part of the 60% of Americans that don’t have a will, you might have named your spouse a beneficiary and that will need to be amended. Go through everything slowly and be thorough.
Prepare to Make Sacrifices
At the end of the divorce proceedings, chances are you might not be able to keep everything you wanted. It is therefore important to only prioritize the things that are really important to you. You should also understand that your lifestyle will most likely change since you will be starting afresh and alone.
Agree to Work Together
The best way to ensure that you both come out financially OK is to play nice. If you and your spouse agree to do everything peacefully, you won’t need a lot of mediators and hours of court proceedings, therefore you won’t get to spend much. The cheapest divorces are those where partners fight each other too much. Perhaps the most important way to protect your finances during a divorce is to play nice. After all, if you decide to go to war, you will both lose.
The good thing with finances is if you handle them well, you will emerge financially satisfied at the end of your divorce. If you feel you can’t handle all of it alone, get professional help. This will be good for your current and future financial health.
Photo Credit: stock photo