Money is often the hot-button issue before, during, and after a divorce. Divorce spotlights the intersection of emotions and money, often creating anger and vulnerability. Strong emotions such as worry and fear about having enough to live on or not getting a fair share combined with and a lack of financial literacy, can make the separation process painful and arduous. Both parties in a marriage can have unrealistic settlement expectations.
There is often significant mistrust and discord triggered by a division of assets. Women, in particular, are often less informed about money matters than their spouse. This lack of knowledge is an impediment to moving forward successfully through a transitional situation.
Certified Financial Planner™, and Harmony Financial Advisors President, Judy Haselton specializes in helping clients manage finances through major life transitions such as divorce. She recommends that every woman learns these five ways to prepare and protect themselves financially before or during a divorce:
- Gather all financial, legal and tax documents going back several years.
- Make a list of what you owned prior to the marriage and gifts or bequests to you from family members during the marriage.
- Figure out what your lifestyle costs. Track monthly expenses and income. Determine what it would take to live on your own.
- Check your credit rating and fix any mistakes on the reports which may impact your score.
- If you are not working, consider what you would like to do. Go back to school or volunteer in your field of interest.
Is divorce is a life event, a legal event, or a financial event? It is all three. The end of a marriage through divorce is an experience that usually happens only once in one’s life. It is important to get it right. A tested process is important to moving through this overwhelming personal transition to ensure a successful financial outcome. For more financial insights and tips, subscribe to the Harmony Financial RSS feed.
