For those going through the process of a divorce, financial concerns are paramount. Everyone knows that divorce isn’t only an emotional event but can also be a financially taxing one. Thus, it is imperative that you know what to expect during the divorce process and how to manage finances after divorce. At Batson Nolan PLC, our divorce lawyers have decades of collective experience helping familiarize individuals with the divorce process and effectively advocating for them at every stage of the process.
How to Manage Finances During Divorce
Getting a divorce can be a lengthy process, and those anticipating a divorce should take steps in advance to prepare themselves for the potential financial impact. Not only that, but in many couples, it is common for one spouse to primarily assume the role of handling the finances. If your spouse is the one who has generally handled the money, it is essential that you start to learn everything that goes into maintaining a household’s finances.
For example, you can start by creating a checklist of all your financial priorities. While everyone’s situation is different, some of the things that you may include on your list are:
- Rent or mortgage payments;
- Utility bills;
- Cost of food;
- Cost of transportation, including gas and vehicle maintenance;
- Property maintenance expenses;
- Childcare expenses;
- Retirement savings; and
- Cost of a child’s secondary education.
By identifying all your expenses, both now and well into the future, you will have a better idea of how much money you will need post-divorce to maintain your current quality of life.
If you signed a prenuptial agreement, there are additional considerations at play. By signing a prenuptial agreement, you and your spouse agreed about how to divide your marital assets. A premarital agreement, if properly drafted and executed, will override state law, meaning a judge will not have the authority to set aside the agreement. Those who signed a premarital agreement should reach out to an experienced divorce attorney if they have any questions about their rights under the agreement.
Reaching out to a divorce lawyer is always a good idea. A lawyer can give you a better idea of what to expect throughout the process and identify certain things that you may be able to ask for during the divorce. And if you are concerned about the cost of an attorney, Kentucky courts may award you temporary alimony, allowing you to retain an attorney to represent you during your divorce.
How to Manage Finances After Divorce
After the court finalizes your divorce, it is important that you reassess your financial situation in light of the changes brought about by the divorce. For example, below is a list of post-divorce financial considerations that are worth looking into. Certainly, not each of these will apply in everyone’s situation, but they give you a good idea of the issues you should be thinking about.
Create a Post-Divorce Budget
The best way to understand (and improve) your financial situation is to create a detailed budget. This is especially the case for those who recently went through a divorce. After a divorce, your financial situation may be very different from what it was while you were married. Thus, it may be that you need to cut back on spending for a while after getting a divorce. That’s typical; however, what you don’t want is to overspend, which will put you in a far worse financial situation down the road.
Focus on Building Credit
A lack of credit is something that many individuals experience after a divorce. It’s common for one spouse—usually the primary wage-earner—to put their name on all mortgages and loans. While this may make sense at the time, in the event of divorce it can put the other spouse in a position where they have little to no credit. The best way to start building credit is by opening a credit card in your name only. If you have no credit at all, you may need to start with a secured credit card. Either way, after a year or two of timely payments, you’ll start to see your credit score increase.
Watch Your Wallet
After a divorce, you are essentially in uncharted waters, financially speaking. Thus, this is a good time to tighten the purse strings and focus only on buying the necessities—at least until you have a better understanding of your finances. For example, you should focus on clothing, food, housing, and transportation. This will ensure that you adopt healthy financial habits that will translate well into whatever situation you find yourself in.
Focus on Your Career
If you worked while you were married, perhaps little changed post-divorce. However, if you were a homemaker or raised children while your spouse worked, you may need to consider your career options. Many people who just went through a divorce either go back to school, switch to a higher-paying job, or start their own business. While these are all good options, your post-divorce career is a personal decision that only you can make.
If You Have Questions About Divorce and Finances, Reach Out to a Dedicated Divorce Lawyer at Batson Nolan PLC
At the law firm of Batson Nolan PLC, we have been helping clients overcome the legal issues they face since 1860. We are widely recognized as one of the most respected divorce law firms in the area, and for good reason: we take an individual approach to every case we handle. Our attorneys understand what you are going through and can effectively address your concerns as they come up. While we are often able to resolve divorce cases out of court, we are also experienced, litigators. This means we will not hesitate to take your case to trial if we cannot reach an agreement with your soon-to-be-ex. To learn more, and to schedule, a free, no-obligation consultation, give Batson Nolan PLC a call at today. You can also reach us through our online contact form.