If you are facing divorce, you may be feeling overwhelmed by financial uncertainty. From figuring out where you will live and how you will continue supporting yourself and your children to dividing large assets like real estate or investment accounts, you may find that you have more questions than answers.
Whether you and your spouse want to pursue an uncontested divorce or you need to litigate your separation in court, the right preparation can be empowering.
1. Get to know your finances
Your financial life post-divorce is likely to look much different than it is now. Keep in mind that you may have to pay for many things separately that you once shared with your spouse. It can be helpful to take a pragmatic look at your cash flow, including assessing your income and creating a prioritized list of current and future expenses.
2. Avoid hurrying to make big changes
Take your time before making any big financial changes, including closing accounts, opening new ones or liquidating any assets. Staying invested may be the better choice for now, and in some cases, making major financial choices before or during divorce may be illegal.
3. Try to be practical about emotional assets
During divorce, it can be easy to fixate on items that are emotionally important to you, such as the family home. However, in some cases, keeping those assets may not be practical after divorce. While your emotional investments are an important part of the picture, make sure you do not lose sight of other assets that may be a better financial choice for the future.