Getting divorced brings about myriad changes in a person’s life. One of the most significant of those changes is the impact that divorce has on a person’s financial landscape. In many situations, a person getting divorced is going from a two-income household to a one-income household. If you are thinking about ending your marriage, there are some important steps you should take to protect your financial future.
Figure Out Your Budget
It is important to know what your monthly expenses are. Make a list of what your typical monthly expenses are, including your mortgage or rent, electric, heat, internet, phone, vehicle payment, child care, insurance, etc. This list should also include other expenses you may have such as entertainment expenses, vacations, out-of-pocket medical expenses, children’s extra-curricular activities, etc.
Once you have determined what your expenses are, take a look at what your monthly income is, including what it will be once the divorce process is complete. In addition to your income, will you be receiving child support and/or spousal support or will you be paying those obligations to your ex?
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