Protecting Your Rights | Personal Injury

Start Saving Now: 6 Tips To Help You Financially Prepare For Divorce

No matter what financial situation you are accustomed to, things will be different after a divorce. There are many life changes that come with a divorce – in living situation, emotional spectrum, and social life – but one of the changes that affects people most deeply are the major financial changes.

If you are considering or starting the divorce process, one of the best things that you can do is to prepare yourself for the incoming financial changes. Here are our 6 tips to help you financially prepare for life during and after divorce:

Assess Your Situation

The best starting point is simply to track what your actual income is (as in, all on your own) and what your current expenses are. You don’t have to start off by making an intense budget (although that always helps,) but simply being aware of your exact current financial situation puts you leagues ahead of most people starting the divorce process.

Decide What Expenses You Can Live Without

Getting a divorce means spending a lot more money than you are used to and simultaneously receiving less income than you normally do. That means that any expenses you currently have which you can cut will be a major boon to you. You might be surprised what you can live without. After a few weeks, you might not even miss things like eating out at lunch, subscribing to multiple streaming services, or paying extra for delivery.

Collect Documents

Financial documents that prove both spouse’s total income – such as tax returns, bank statements, credit card statements, and paystubs – are essential to the divorce process. Lawyers can request them and receive them in time from your spouse, but if you are in a place where you can gather their documents yourself, it could help expedite the process. Make sure to collect your own financial documents as well, as far back as you can.

Give Yourself Some Credit

Having good credit is important for making major life purchases like a house or a car, and getting a divorce tends to plummet your credit score. Consider using one of the many free services that allow you to regularly check your credit score and offer suggestions for improving it. If you have any purchases that are currently improving your credit, try to keep them in your name during the divorce.

Don’t Make Any Major Purchases

A good rule of thumb is to treat your finances during a divorce like someone else is watching every penny that you spend and determining if it was necessary or not – because they are. Trust us, the divorce process is not the time where you want to finally cut loose and buy that boat. Making any major purchases will not only hurt your financial life, it will alsoreflect negatively on your side of the divorce.

Ask For Help

Divorce is a major step, and it should not be taken lightly. Making financial preparations can be the difference between thriving and surviving! Contact Sutton Law Group today to speak to someone who will be happy to help you with any of your questions. We’re here when and where you need us!

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Sutton Law Group

Sutton Law Group is a leading Miami law firm that has served both personal and business clients since 1985. We provide legal services in the areas of personal injury, commercial litigation, construction injury, real estate, criminal defense, and estate planning.

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