If divorce is looming, now is the time to start thinking about money. Divorce can impact your finances for many years to come so get a game plan and follow that plan.
Each person’s facts are different but here is a list of some immediate financial considerations:
• Housing costs
• Professionals; parenting professionals, tax accountants, forensic accountants; counselors
• Attorney fees
• Additional living expenses for maintaining two homes
Long term considerations
As important as thinking about the here and now, you must consider the future too. Factors like debt, retirement savings, child support, taxes, etc. can have a significant influence on your financial security in the years to come.
Important factors and questions to consider:
• Are you saving for retirement in your own name?
• Do you need a car?
• Should you keep the home or is it unwise to do so?
• This is the time to live frugally – understand your new financial norm before incurring debt.
• How is your tax liability changed by the divorce?