In the classic Charles Dickens story, “A Christmas Carol,” Ebeneezer Scrooge is visited by the ghosts of Christmas past, present and future. When it comes to looking at your finances for your divorce, you need to think in the same way.
What financial issues do I need to consider in divorce?
It can be easy to get caught up in the heat of the moment with an upcoming divorce. You may overlook important monetary issues. Here are some things to focus on:
- The past: Property that you held before your marriage will typically stay with you when you divorce. Assets that you acquired during your marriage will typically need to be divided.
- The present: Make a list of everything you currently own. If you are unsure of the value of something, have it checked professionally. Create a list of all assets as well as all debts. Take a look at your current spending. It can help you set a realistic budget for the future.
- The future: What will it cost to run a household alone? How much will a smaller property cost? If you have children, how will you support them? If the children are going to spend most of their time with you, you should claim child support from the other parent. You also need to look further ahead still. Consider things such as any retirement funds and life insurance policies that either of you hold. What will happen to them in divorce, and how will this affect your retirement?
Divorce can have a considerable effect on your finances as well as your emotional health. If you fail to prepare your finances adequately, it could increase how long you take to recover from the end of your marriage in more ways than one.