Along with wreaking havoc on your heartstrings, getting a divorce can destroy your economic situation. Most divorces end up costing spouses much more than they anticipated.
Since experiencing financial hardships is a valid concern, most want to do all they can to protect their post-divorce life from economic woes. The tips below can help you get off to a good financial start as a newly single person.
1. Gather and organize
You and your spouse must disclose all your assets and liabilities during the divorce. Those who collect the financial documentation necessary for divorce in advance enter the process well-prepared to preserve their share of marital property. Organize your documents so that you and your representative can easily reference them.
2. Create a new budget
Your financial life will look much different after your divorce. Create a new budget to account for a single income and your anticipated expenses. For ideal results, overestimate your potential living expenses to ensure you have enough money to cover them.
3. Get professional guidance
Those with wealth or high-value assets may need extra protection when divorcing. Although California is a community property state, spouses still risk obtaining an unfair settlement. A well-rounded team may consist of an experienced financial advisor, a private investigator and even a forensic accountant.
These three steps can set you up for success in the immediate aftermath of divorce when money is particularly scarce. It also ensures that you have located all assets, even any your spouse tried to hide away. We also recommend learning more about California divorce laws, with extra emphasis on property division rules and procedures.