A divorce can cost you a lot of money. It's not just about the money that you might lose if the property distribution isn't in your favor; the process of legally separating from someone you are married to comes with many costs. If you look closely at your finances, you might be surprised to realize that you can't even afford to get divorced.
If you're considering divorcing your current spouse, you need to ensure your finances are ready for the upcoming expenses.
What Expenses Are Associated with Divorce?
Legal fees are one of the main expenses associated with divorce. You'll probably need a divorce attorney to represent your interests, especially if you and your spouse end up in court. Depending on the quality of your attorney and how long the case is, these legal fees can be substantial.
Apart from legal fees, you and your spouse will start living separate lives. This means you may have to think about paying rent or a whole new mortgage. Your children may be alternating who they spend time with, you may need a new car, and you'll also have two sets of utility bills to pay between the two of you. There are other expenses that may come up depending on your individual case.
How Can You Assess Your Financial Readiness?
The first thing you need to do is to know how much money and/or assets you have. This can give you a good idea of how much you can realistically spend. You should know what assets are yours and which ones are considered marital assets.
Secondly, you should track your expenses. Knowing how much you're currently spending can tell you if you'll need to make cutbacks to improve your readiness.
How Can You Improve Your Financial Readiness?
If your finances don't seem like they'll support you throughout the divorce, there are several things you can do to help. First, you may need to make a few cutbacks. Assess your current expenses and decide where you can reduce your expenditure.
Secondly, start keeping track of your partner's spending habits. An unwarranted increase in spending on their part can further reduce your readiness.
Third, if you've not been working, it might be time to consider getting a job. This can help you during the divorce, and it can also help you to prepare for life after divorce. A reliable income stream can safeguard your financial future well after the divorce.