Financial Tips for Women Going Through a Divorce
Many women who are going through a divorce are completely in the dark about finances. They have never had to make a list of monthly or annual expenses in comparison to their income, in order to establish a reasonable budget. That was something that was performed by a woman's parents prior to marriage, and her husband after they were married. That is why when the divorce process begins, and the soon-to-be ex-husband is no longer around, a significant number of women feel panicked when faced with even simple financial issues. Here are a few tips.
Not only is it important for all women going through a divorce to become proficient at handling their financial matters, it can also prevent them from becoming an easy financial target. For example, they will learn how to avoid salespeople trying to sell them financial or insurance products that they don't need. Once you learn to be comfortable discussing essential financial matters, fear of the unknown will be removed, and you will be able to make well-informed and educated decisions.
It is essential that you know how much money it will take, without borrowing from savings or incurring credit card or other debt, to maintain your present lifestyle. This list of your monthly expenses will enable you to work methodically towards a more favorable settlement during the negotiation process.
You should also know the nature and extent of the assets that existed during your marriage so that you will have a better idea of what a reasonable division of your community property will be when it is split up. Make an inventory of all of the assets accumulated during the marriage and those belonging to each other prior to the marriage or inherited during the marriage. The portion of the checking accounts, savings accounts, retirement accounts, investments, valuables, houses, cars and other things agreed upon in your divorce property settlement agreement will then become your individual assets.
Your credit card debt, mortgages, car loans, personal loans, student loans, business loans and other monetary obligations make up the liabilities accrued during the marriage must also be documented as part of your divorce. It is critical to determine whether the debt was accumulated during your marriage, or prior to it. This will be dealt with during divorce settlement discussions, as well as canceling joint credit cards, lines of credit and checking accounts. In a property settlement agreement, it is very important to specify which party to the divorce is responsible for the payment of the liabilities from the marriage.
Once your divorce is finalized, it is easy to go overboard spending the money you obtained from your settlement. This may happen out of anger, or simply because it is money that you have not been accustomed to having. That is why it is important to keep spending on unnecessary items to a minimum until you have adjusted to handling your finances alone. Understanding what your monthly financial needs are for like food, clothing, car-related, insurance, children's school expenses, cell phones and housing is essential. Doing so will allow you to better plan for emergencies, building your savings, and any trips.
If you are think about divorce, it is in your best interests to seek the advice of a family law attorney who is experienced in all parts of the process. Going through a divorce can be emotionally draining, but having the guidance of an experienced divorce attorney can help you overcome obstacles and move forward.
Allan R. Manka is a Bexar County attorney who has helped to guide clients through the divorce process for nearly 40 years. He is well known and respected by his peers in the area and surrounding counties, such as Comal, Guadalupe, Atascosa, and Medina County.
Contact us today for your free initial consultation at (210) 807-8629 or (866) 621-7085 toll free.
Why You Need To 'Speak Money' After Divorce , The Huffington Post, Article by Honoree Corder, September 4, 2012