How can I keep my finances on track?
On behalf of Furr & Cohen, P.A. posted in Divorce on Thursday, August 20, 2015.
There’s no way around it. Divorce is expensive, and even the most civil of separations can end up costing you both more than you expected. Divorce often comes with many other expenses you may not have been prepared for, including spending more on gas because you are driving back and forth to pick up your kids for visitation or eating out more often due to stress or time constraints. Whether you are just starting the divorce process or just received the copies of your finalized decree, these tips can help you get your finances back in order.
If you can squeeze it into your budget, talk with a financial planner. These professionals aren’t just for those with lots of extra money to invest, and they can often help with practical advice tailored to your particular situation. You might be surprised at the options you have available, and even just going over your monthly budget with a person who is not emotionally attached to how you spend your money can give you a fresh perspective.
While many couples are focused on how they will divide their marital assets, in many cases you’ll also be splitting debts. It’s important to talk to your lawyer about this early on in the process to ensure you’re aware of how this could affect your finances after the divorce is finalized. If it’s likely you’re going to come out of the divorce making some extra payments, you may want to start adjusting your budget now.
Last but not least, don’t panic. While staying out of debt is the best possible scenario, don’t get rid of all your credit cards until you have a fully funded emergency fund that can help you stay afloat. Divorces can bring unexpected expenses and life happens quickly. You’ll want to make sure you’re as prepared as possible.
Source: The Huffington Post, “Handling Credit Card Debt During and After Divorce” Beth Cone Kramer, Aug. 14, 2015