If you are going through a divorce, it’s important to understand that this is already a difficult time in your life, even if you want it or you think it is for the best. Remember to take step back and understand that financial matters during divorce can have a huge impact on you for the rest of your life.
There are a variety of different financial matters to consider when you are getting divorced. Make sure you understand what is going on and how these changes could affect you so you aren’t caught unaware or left in a bad situation.
Here is What You Should Know About Financial Matters During Divorce
Figure Out if Community Property is An Issue
One of the most important things to figure out is if you live in a community property state. Understanding which states have community property law is an important first step. If you live in a state that has this law, it is important to understand that you might be responsible for your spouse even after you are divorced, particularly if you worked and they did not.
In cases such as this, it is crucial you speak with an attorney and find out what possible legal or financial issues you could run into. In cases where community property is not an issue, you’ll be more equally divided on certain matters. Regardless, it can be helpful to talk with professional legal counsel on those matters.
Consider How Children Relate to Your Situation
If you don’t have children, this can make the divorce easier. However, if you do have children, you’ll need to figure out if you will have joint or shared custody if the children will be moving out of state or staying there, and how much, if any, support you will need to provide to them. Although children are so much more than another financial topic in terms of a divorce, their needs and support will play a role in how your finances are managed.
Talking with your attorney can help you understand what types of options are available and what your soon-to-be-ex-spouse wants. Even if you do have to provide support to your children, find out how often you’ll get to see them. There are many cases where courts want both parents to share equal support and aren’t always quick to give full custody to one parent. Understanding what this could entail for you is important.
Learn How Your Credit Can Be Affected
You should find out how your credit could be affected when it comes to getting divorced. Figure out if there are any credit cards in your name where your spouse is an authorized user, and how much debt they might have charged to your cards. Even if there were things your spouse brought and has taken with them, you might be liable to pay for the charges. Talking with credit lawyers can help shed light on the situation and give you a better idea of what to expect. Even if you do have to pay the money back, you’ll have a better understanding of what you’ll need to deal with later on.
Decide How This Will Impact Your New Life
With all these changes that will come about from your divorce, think about how your life will be impacted. You might have to downgrade living from a house to an apartment, or even move to a cheaper city. If you weren’t working, you’ll likely need to get a job. Some people find themselves in the position of needing more than one job or making use of the gig economy in order to get the hours they need, take care of their families, and deal with a totally new lifestyle.
Keep in mind that although this might feel overwhelming at first, you can learn to get through this situation and develop a new type of normal. Perhaps you’ll learn more about becoming financially savvy or maybe you can focus on quality over quantity in life.
When you are going through a divorce, it is understandable to be overwhelmed by the variety of changes, including how this change will impact your finances. You’ll need to figure out if your state is a community property state and how this could affect you in the divorce. If you have children, this could play a role in your finances and how often you’ll see them.
Your credit might be affected, and you might have to pay for certain purchases your spouse made. It is best to consult with legal professionals in these types of situations. Finally, figure out how your new life will affect your finances. If you weren’t living frugally, now is a chance to make a lifestyle change for the better. Even if you are getting divorced, this doesn’t have to ruin your financial situation.