Managing Your Finances After a Divorce

Oct 10, 2017 by

Managing Your Finances After a Divorce

There Are More Financial Considerations Than You Think

Divorcing couples have plenty of emotional upheaval to get through. But it is important to look after finances too.

Going through a divorce is one of the most stressful experiences you are ever likely to experience, and involves heartache for not only the divorcing couple, but for those close to them, too. It is understandable, then, that it is not always easy to stay pragmatic and focused during the process.

However, there are important things that need to be considered that have nothing to do with emotion and everything to do with financial reality, and leaving them hanging in the balance could have major and irreparable consequences for you going forward.

Here are some points to consider when managing your finances after a divorce.

1) Get professional help

The best divorce lawyers will not only be able to advise you on the mechanics of the divorce and matters relating to the children’s residency, access and so on – they will also be experienced in negotiating financial settlements and the common issues that arise.

As with every other aspect of the divorce process, they have been there and done it many times, and will be able to offer good advice when you need it most. This is, however, another reason why it important to have a divorce lawyer with whom you are comfortable and have absolute confidence.

2) Know what you need

If it comes to court, they will be looking to make sure the financial settlement is in the interests and to the benefit of both parties. You can only get a handle on what this really means if you have a clear picture of your own financial needs.

That doesn’t just mean the cost of living, incorporating food, rent, utilities, car costs and so on. Also remember to factor in any outstanding loan repayments, insurance premia and other miscellaneous monthly costs.

3) Putting the children first

By the time you are half an hour into the divorce process, you will be well aware that if you have kids, their interests need to be put in first place. This is absolutely as it should be, and applies as much to the financial side of things as it does to everything else.

The first priority will be to ensure the children have a roof over their heads, and if the former matrimonial home is to be sold, do not assume there will be a 50/50 division of the proceeds. Typically, the way it works is that the party keeping the children will need enough equity to provide them with a home. In some cases, this can result in one person receiving significantly more of the equity that the other.

Then there is the question of on ongoing child support to consider. A court will refer this question to the Child Support Agency, and there is a useful online tool to calculate how much should be paid, based on the number of children and the main earner’s gross income.

Getting the finances straight

There are a huge number of decisions to be made when going through a divorce, at a time when you might not always be thinking straight. The most important advice is to get the right professional support to agree the financial terms that work best for everyone, and allow you all to move on with life with the minimal stress and heartache.

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