Divorce is not an event in one’s life to look forward to. However, it is something that people go through and the only way to get through the whole process unscathed is to prepare for it. More than emotional preparation, being financially prepared is something that you should focus on.
One’s financial preparation for divorce will be affected by various factors, such as his or her financial capacity, whether or not there are children involved, as well as the source of income. There might not be a single checklist that can help one’s finances in preparation for divorce, but there are some points worth taking note of in order to make the whole process easier.
1. Work with a professional
Experienced divorce lawyers in Townsville and other places are there not only to help you with the whole divorce process. They are also knowledgeable about the financial struggles that people face during a divorce. While the advice and personal experiences from friends and family may seem like a helpful source of information, this does not mean you should solely rely on what they say. Work with a lawyer and an accountant to have your finances in order before you step into the long and legal battle called divorce.
2. Track all your expenses
Upon knowing your financial standing with the help of a professional, you should be able to make a conscious effort to track your expenses. What are the things that you need to have and pay on time? What are the things that you can forgo? Changing your cable subscription from premium to standard might just save you a couple of dollars, but when done collectively, things like this can amount to something significant.
The point is, tracking your expenses can help you better understand the inflow and outflow of money. This then gives you better control on how to budget them for your daily needs, for the divorce procedure, for the future, and for an emergency.
3. Refrain from making big purchases
Moving to a new home to get a new start after the divorce is ideal and would help you move on with your life. But buying a new house while you are in the middle of the divorce procedure might do more harm than good to your finances. The whole legal process does not come cheap and in order to get the results you want, you need to be financially ready. Refraining from such purchases can help you have a better cash reservoir to move in, which can make things easier for you.
4. Additional income source
Having an additional source of income is one of the easiest and most obvious ways to have some extra cash to spare. Signing up for that weekly overtime or working in a diner for a couple of hours a day on top of your day job might not give you significant earning, but at this point, any kind of income is income and would be able to help you in your whole divorce journey, as well as your life after that.
Financially preparing for divorce is not easy. But knowing where to start and having the right guidance is key to getting through the whole thing easily.