Sound financial decisions before and during divorce

Divorce can prove to be a real financial burden. However, there are certain steps that can be taken prior to and during the process that can lessen the overall impact now and into the future.

The first thing to keep in mind is that divorce is fairly common. In fact, nearly half of all marriages in the U.S. will end in divorce. This means you are certainly not alone and there are plenty of other Missouri men who have either already gone through the process or are also going through a divorce. Some of these may be uncontested, but plenty will also be rather contentious.

In terms of the financial impact, while before the divorce both spouses may have been working, now with independent living a person will need to readjust their lifestyle and budget accordingly. This could mean not going out to dinner as much and moving into a smaller, more modest home.

In order to do this, even prior to the break up, make sure to get access to all of the bank account numbers. This will help in terms of taking a financial inventory. However, it’s better to get the account numbers beforehand as moving out could make it more difficult to obtain this information.

It is also a good idea that both spouses have credit cards in their own names. This helps to make sure both spouses have their own credit, which is crucial if there is ever a split up.

Lastly, now is not the time to make purchases or requests based on emotions. This means that while a spouse may feel a certain level of attachment to the family home — or even just be angry about the split — don’t request the home unless it is realistically affordable. If it is not, walk away from the home.

Source: ABC 13, “Minimize financial fallout from divorce,” Gina Gaston, Oct. 18, 2012

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