So, you’re thinking about divorce, huh? First of all, let me give you a virtual hug. This is a big step, and it’s okay to feel a whirlwind of emotions. But let’s get down to brass tacks: finances. Because, let’s be honest, love might make the world go ’round, but money keeps the lights on.
1. Know Your Assets and Liabilities
First things first, you need to know what you’ve got. I’m talking about assets and liabilities. Make a list of everything: bank accounts, retirement funds, debts, and even that secret stash you’ve been keeping for a rainy day. Knowledge is power, and you’ll need all the power you can get.
2. Credit Score Check
Your credit score is like your financial report card, and you don’t want any surprises. Make sure you know where you stand because this little number will affect your life post-divorce in ways you can’t even imagine. Want that cute apartment downtown? Better have a good credit score! You can pull yours for free on services like creditkarma.com or even your own credit card company. Also pull your free credit report from www.annualcreditreport.com
3. Budget, Budget, Budget
I can’t stress this enough. Create a budget for your new life. Think about rent, utilities, groceries, and don’t forget self-care. You’ll need a lot of that. If this is foreign territory for you, working with a Divorce Financial Planner is a must! Don’t be ashamed if you weren’t the money person in your marriage but now’s the time to get educated.
4. Spousal Support and Child Support
If you’ve got kiddos or have been out of the workforce for a while, spousal and child support could be on the table. Consult a divorce financial planner to get the lowdown on what you’re entitled to.
5. Legal Fees
Ah, the elephant in the room. Divorces can be expensive, especially if they’re contentious. Make sure you have a financial cushion for legal fees. It’s like buying insurance for a hurricane—you hope you never need it, but you’ll be glad you have it.
6. Taxes
Oh, taxes, the gift that keeps on taking. Different assets come with different tax implications. For example, pulling money out of a retirement account could land you with a hefty tax bill. Again, build the right team of professionals to be sure you understand all of the options available to you.
7. Emotional Costs
Last but not least, let’s talk about the emotional cost. Divorce is draining, both financially and emotionally. Make sure you’re investing in your emotional well-being. Whether it’s therapy or a weekend getaway, budget for it. Your sanity is worth every penny.
So there you have it, the financial considerations you need to think about when contemplating divorce. It’s a tough road, but you’re tougher.
Remember, you’re not just surviving; you’re thriving. And if you need more help, don’t hesitate to reach out to professionals like those at Smarter Divorce Solutions.
You’re worth it. 💖
Your Trusted Partner
At Smarter Divorce Solutions, we help you with creative solutions and sound financial decisions surrounding the dissolution of your marriage, because we know that in the end you will still be part of the same family. Happy Anniversary to those that made it, and a kinder, gentler and more affordable divorce to those that didn’t.
