Recovering from a Financial Divorce
Every marriage does not end in “happily ever after”, and that means divorce is generally the end result of a failed marriage. While a large percentage of people have gone through a divorce, you will find that sometimes, you need more than a simple separation. Financial divorce is a method by which a partnership is dissolved with all the finances taken into consideration. Splitting up is hard, but your finances can take a real beating.
There are financial divorce professionals that can help, but sometimes, a little help goes a long way. Here are some tips to insure breaking up doesn’t thoroughly slaughter your pocketbook….
Have realistic expectations – One household is getting split into two. This is going to make things a bit tight unless you are a movie star or just filthy rich. Most people struggle as a two income household. But now that two income household is being cut into a one income household. This can cause a lot of stress. Be realistic. If you are a single mom and want the house, can you afford the payments, realistically? Sometimes the best bet is to sell the home and split the profit…
Be honest – Many people will try to hide certain assets or other forms of income. This is a bad, bad idea! You will be discovered, and then you will pay even more to your attorney as he or she tries to rectify your deception. Be honest and forthcoming with your attorney.
Don’t make the courtroom your battleground – These days there are many ways to figure out how to split the finances without taking the battle into the courtroom. Financial divorce does not have to be devastating. You can easily save thousands of dollars in lawyers fees and court costs by simply figuring out what works for both parties without getting into the courtroom and making that your battleground.
What is it really worth – Rather than accept a $50,000 car as part of the settlement, you may want to consider a bond or other type of stock. A vehicle will depreciate while a bond, stock, or mutual fund is likely to bring you in more money. Think about your future not just the here and now. Assets are not always going to be worth more tomorrow. Where will this leave you?
Be willing to negotiate – You have things you want; the other party has things he or she wants. Be willing to compromise. You will find that you save a lot of money in lawyer fees when you are not struggling over the $2 gold fish you both love to death. Pick your battle well, and you will find you get a lot more than you thought you would.
When it comes to financial divorce, you have a lot to consider. There can be a lot of money or just a little money to take into account, but in the end, you will find that struggling to make ends meet is easier if you plan ahead and compromise.
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