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How to protect your post-divorce financial stability

On Behalf of | Aug 16, 2022 | Divorce

There’s no doubt that divorce is a major financial transaction. While you’ll be tasked with trying to negotiate a property division resolution that is fair and leaves you in a strong financial position post-divorce, you also have to worry about other financial aspects of your marriage dissolution such as alimony and child support.

What you can do to protect your financial interests

With all of those issues swirling around, you might find yourself worried about securing stability after your divorce is finalized. This is a legitimate concern, and something that you should start planning for now. But how do you do that? Here are just some of the things that you can do to protect your interests and better ensure financial stability post-divorce:

  • Recognize how significantly your income will be reduced: You’re probably going to be moving from a two-income household to a single-income household when your divorce is finalized. So, make sure that you fully understand just how significant of an income drop you’re going to experience. This will give you a better sense of what your finances will look like once everything is said and done, which, in turn, will help you create a budget within which you can live.
  • Consider the financial implications of keeping the family home: A lot of people who go through divorce want to fight for the marital residence. This is understandable given that they need a place to live and the fact that they might have memories tied up in the home, but keeping the residence can be quite expensive, especially when living off of one income. You have to keep in mind that you’ll have to pay the mortgage and insurance and cover any maintenance and upkeep costs. So, you might want to reconsider whether fighting for the home is best for your financial interests.
  • Assess marital assets: This sounds like an obvious thing to do, but you need to take a deep dive into your marital assets so that you understand what’s in play in your divorce. Don’t let your spouse hide or squander away assets that could leave you in a less-favorable financial position post-divorce. Also, make sure that you’re able to recognize which marital assets have the most value to you so that you can target your legal strategy to obtain them. For example, retirement accounts may have more value to you than items of personal property.
  • Focus on your credit: After divorce, you might need to focus on building your own credit history so that you’re in a better position to obtain needed loans, such as for a new, perhaps smaller, residence. This might not be as easy as it seems, though you can consider obtaining credit cards, using them regularly, and paying off balances in full each month to see your credit score rise. Also, make sure that you get a copy of your credit report to ensure that all debts that you shed during divorce have been removed.

Properly preparing your divorce strategy

 You certainly have a lot on your plate as you consider the best way to go about finalizing your divorce. And the process can be unbearably stressful. However, by working closely with a skilled family law professional, you might be able to develop the legal strategies necessary to give you comfort and peace of mind. After all, well-crafted legal arguments might put you on the path to the financial security that you deserve post-divorce.