Preparing financially for a divorce

On Behalf of | Jul 24, 2020 | Family Law And Divorce

Individuals in Indiana and other areas of the United States can financially prepare themselves for divorce by taking time to evaluate their finances beforehand. Whether the divorce was expected or unexpected, there are several important financial preparations that should be made before proceeding to negotiations.

A person who’s facing the inevitability of divorce should make a budget based on his or her current expenses and income. This can be the most important step toward regaining a sense of control and calm even in the midst of such disarray. The simplest way to set a budget is to make a list all fixed expenses, which may include rent, utilities, cable, groceries and other regular bills. The second step should be to list all sources of income including money from employment, investments and pensions.

After comparing expenses with income, individuals who are going through divorce should make every effort to stop overspending if they feel that finances will become too tight in the future. Variable expenses like eating out, shopping, or purchasing home or personal items should be put on hold if necessary. If income still isn’t sufficient enough after making reductions, it may be time to evaluate how it can be increased.

When a person is facing divorce, gaining a sense of control over finances can make a tremendous difference. While setting a budget is the most basic step to surviving divorce, there will most likely be additional hurdles to overcome. These obstacles might include calculating child support, determining child custody and visitation terms, selling property or businesses and splitting finances. In these situations, an individual who’s going through a divorce may consider getting the guidance of an experienced family law attorney.