Maintaining Financial Solvency Through Divorce

 Posted on August 04, 2013 in Divorce

The cost of divorce doesn't always just refer to the price tag for an attorney's services. Especially for marriages in which one spouse was the primary earner, the process of sorting out the financials is difficult and sometimes complicated. Oftentimes women get stuck with a financial burden that's too much to bear. Knowing what to do before a divorce is essential for either spouse, but it's especially important that the non-primary earner take steps before a divorce to maintain financial solvency after the split. According to WIFE.org, "divorce is the largest single financial transaction of most people's lives." Important first steps include canceling all joint accounts and opening private accounts that your spouse doesn't have access to. In the same vein, before you separate (especially if the divorce is your idea, it's not necessarily slated to be amicable, and you're not the primary earner) WIFE.org suggests to "use joint funds to repair your automobile and home, buy clothes for yourself and your children, and other family expenses." Starting off the split with joint expenses paid will save arguments down the line as to who should be responsible for paying them.  

Having said that, if you didn't prepare financially for divorce before the process was in full swing, it doesn't mean it's too late. According to CNN Money Magazine, the three most important "fixes" to financial insolvency after divorce are to "follow the money, reschedule retirement, and keep renting." To follow the money is to carefully (obsessively, even) track what you're spending and how you're spending it. Adjusting to a single income after becoming accustomed to two isn't necessarily an easy process. You can do "a thorough analysis of cash flow using a program like Quicken," according to CNN.

Retirement plans will likely have to be flexible upon divorce—that may mean working another five years, or planning to put away more into a 401k or other retirement plan each year. Another life plan that may have to be reconsidered is home ownership. For many divorced or divorcing couples it's smarter to keep renting and put the money you may have used on a down payment away for emergencies.

If you or someone you know is considering divorce, don't go through it alone. Contact a dedicated Texas family law attorney today.