Getting divorced can be a very costly decision. The average
financial loss in a divorce is nearly $20,000 and can be much more. Not only is the process of going through a divorce expensive, but it can also be shocking to go from being a part of a two-income family to supporting a household on your own.
Even with child support and alimony, divorce can be difficult for the lower-earning person, and the ex-spouse who is responsible for paying support can find that they struggle as well. No matter which side of the fence you are on, take care to avoid financial disaster during this already difficult time.
If you are not already in the know about the household finances, start educating yourself about them immediately if you are considering a divorce. Think of it as taking a crash course on the household finances. Since one spouse often handles the finances, that leaves the other at a disadvantage during a divorce. Don't let that be you. Know how much is being earned and what it costs to run the household.
The more you know about the finances you are going to have to handle, the more empowered you can be to make wise financial decisions from the start of the divorce process. Ask questions about what you don't know. Don't let things go until you know as much as you want to about monthly earnings and expenditures. Even if it's out of your comfort zone, do it for yourself and your family.
Many people like to spend money when the going gets tough. "Retail therapy" is a popular term for good reasons. However, when you are getting a divorce, you want to cut back on spending instead. Create a budget that is reasonable as you transition from possibly relying on two paychecks to relying on one.
This doesn't have to all be doom and gloom, though. You can still indulge in little extras that make you feel good, but you need to prioritize which ones matter the most to you. Focus on first providing what you and your kids will need, then assess what you can afford that you really want. A budget can be a great way of bringing things into focus.
Spouses tend to share credit, and one spouse can ultimately wreck the other's credit during a marriage. Make sure that you get a detailed copy of your credit report from all major credit bureaus as you embark on your divorce. If you are confused or unclear about any debts, get more information from your soon-to-be ex.
When you divorce, you may end up owing money for things like expensive cars that you don't even want. When deciding what things you should keep after the divorce, question whether you would have purchased them solo. If not, you may want to sell them and use the proceeds to replace the items with more reasonable ones.
Knowing when to ask for help is one of the important ways of taking care of yourself. In the aftermath of a divorce, prioritizing self-care is a necessary part of self-preservation. Go to therapy if you have a hard time handling the divorce, and you could ultimately save a lot of money. Handling the trauma in a constructive, healthy way can prevent costly, self-destructive habits.
Finally, taking care of every aspect of your life is important during the divorce. Enlisting the help of a caring divorce lawyer can protect your best interests during this challenging time. At
Krisor & Associates, we offer help with all aspects of family law from our location in Granger, Indiana. Founded in 1975, we have more than 30 years of experience in helping and serving our clients through divorce. Give us a call today.
