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Managing Your Finances When Going Through a Divorce

Going through a divorce is difficult emotionally and having to navigate your finances through this tough time can be both overwhelming and frustrating. You need a plan in place to help alleviate some of these stresses. We have compiled a list of ways to manage your divorce financially and leave you feeling both hopeful and worry free for the future. Read more below to see how you can more easily manage your finances through a divorce:

1. Meet with a Professional

You never have to be alone as you navigate this process. Meeting with a professional can help you understand the implications of future actions and how to plan for your financial future. If you have a collaborative divorce then both parties can meet with a professional to decide how to best proceed with everyone’s interests in mind.Meeting with a Professional edit

Choosing the right professional is an important step. Choosing the right financial professional is like choosing a healthcare professional; it is important that you feel comfortable talking about your finances, as well as details concerning your lifestyle, causes of financial difficulty, and future plans of both parties. Your relationship with this person may be a lengthy one, so it is important that you feel at ease and comfortable.

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2. Protect Your Credit

Protect Your Credit

Credit accounts can be held jointly by both you and your spouse and it is best to close these accounts immediately. Both parties are equally responsible for any debt incurred, if an account is left open that means your spouse can keep spending and you will remain responsible for the debt. Anything your ex does on this account will also affect your credit score, so it is best to deal with these accounts as soon as possible.

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3. Develop a New Budget

Stacked Coins edit

Maintaining your lifestyle without your spouse’s income can be difficult. Make sure you are being realistic about your spending and that you can pay for the things that are important, before spending beyond your means.
Making a list of all of your regular expenses and eliminating unnecessary expenses can be helpful. Maybe you need to move to a smaller place, or downsize your vehicle. Cutting back on things like eating out, shopping, and travel can really help you maintain your new budget. See our blog for more ways to manage your finances here: https://relieffromdebt.ca/relief-from-debt-blog/basic-strategies-on-managing-your-debts/

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4. Consider the Tax Implications of any Settlement

Make sure you consider all the tax implications pertaining to your settlement including capital gains.

5. When Kids are Involved

Making sure your children’s financial future is secure is one of the most important aspects of any settlement. Lawyers can be expensive, and coming to decisions amicably and collaboratively is less costly. Using parenting coordination is a less expensive option and if you can agree on a division of assets and an agreeable future for your children, this will end up being much easier for your family unit.

Knowing the legalities of child-support will lessen any unexpected future obstacles and will allow you to plan for your financial future. Maybe your kids will want to go on to pursue higher education, make sure all of this is planned early to avoid any future conflicts with your spouse.Kids Running edit

Knowledge is power. If you don’t know where to turn, or are needing help navigating the financial aspects of your divorce give Hardie & Kelly a call. Our experts have many years of experience dealing with situations like yours and want to see your quality of life flourish after your divorce.

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