Financial Burdens of Divorce: 5 Tips to Overcoming Them

No one gets engaged thinking that one day they’ll be faced with the financial burdens of filing for divorce, but statistics show that around half of all marriages end this way proving many individuals' assumptions incorrect. This can be one of the most devastating events a person ever goes through, but what many people don't immediately consider is the fact that the whole situation can turn financially burdensome as well. Luckily, there are a few steps a person can take to ensure that they survive financially after their divorce.

1. Reconsider Lifestyle

While it's an unfortunate truth, a divorce usually means a change of lifestyle is in order. This is the case regardless of whether a person was in a two-earner household or only one of the spouses worked for a living. A change, however, doesn't have to mean hard times. Taking minor steps like moving into a smaller apartment or even downsizing the luxuriousness of a yearly vacation can go a long way in saving money. Not being married is a change in lifestyle, so it shouldn't create huge financial burdens to expand these changes to other parts of one's life.

2. Gather all Financial Records

One of the most vital things that a person can do to survive their divorce financially is gather all of their financial records. This includes savings accounts, stock portfolios, other investments, credit card statements and whatever else they can gather on the couple's finances. This should also include debts. All of this information is vital if an individual hopes to receive a fair portion of the marital assets after a divorce.

3. Hire an Attorney

One of the most important things that a person can do during a divorce is hire their own attorney. This will ensure that they have someone representing them solely, but a local attorney will also know a state's specific laws. This is essential since the differences between states when it comes to divorce laws are often extreme.

There are certain states, for instance, that will split everything down the middle without regard to specific circumstances of the marriage. In states like Florida, however, known as an "equitable distribution" state, courts will consider various factors during a divorce to ensure the most equitable distribution. So in this case, it would be imperative to have a Florida divorce attorney to represent one's best interests.

4. Separate Accounts

It's also important to separate a soon-to-be-former couple's banking accounts as soon as it's realized that a divorce is imminent. This can prevent potential damage to one's credit, and it will also ensure that a person has financial support during the divorce. It's often enough to simply take out half of the money in an account, set up a personal bank account and then have the joint account closed.

5. Don't Forget Details

Little details can mean big money. A couple who decides to divvy up everything on their own, for instance, may fail to consider the financial burdens of taxes when dividing property. Additionally, a spouse with a pension may choose to just give their soon-to-be ex a lump sum of the pension, but this ignores the fact that price of living adjustments often occur. This is another reason why having legal representation is so important.

While it's understandable to feel numb and uncaring about the future during a divorce, most people who handle the end of their marriage in this way regret it later down the line. Divorce is much like a death. Though most individuals would rather sit back and mourn the loss, it's essential that they get everything in order to ensure the situation progresses as it should. By following the aforementioned steps, and individual can increase their chances of not facing financial ruin after divorce.

Lisa Coleman shares some tips on how a person can overcome the financial burdens a person can face when getting a divorce.

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