How to financially plan for life after divorce

Published By | Dec 18, 2019 | High Asset Divorce |

Colorado residents who are considering divorce should begin financially planning as soon as they consider the split. Planning financially ensures preparation for a healthy financial life post-divorce and might help residents ensure they get a fair settlement.

The first step toward financial planning is understanding assets and liabilities. To do this, the person should make a list with all their accounts and assets, including pay stubs, savings and investments accounts, loans, bank statements and credit card statements. They should also get copies of their income tax returns.

The second step is to make a budget for the future, considering things such as rent or house payments, child care expenses, living costs and retirements savings payments. A divorce often means having to make difficult decisions such as whether to keep or sell the family home and having to adjust to living with less money. Medical insurance also needs to be considered, especially for spouses who were previously covered under their ex’s insurance and will now have to pay for it themselves.

During the divorce process, a good idea is to curtail expenses and save as much as possible in anticipation of the new expenses that might arise after the divorce. These can include the costs of legal fees, insurance payments through COBRA or having to spend money on moving to a new place.

The divorce process can be stressful, but the assistance of a family law lawyer might help get individuals through the difficult period. A lawyer may offer explanations about the legal process and help their client create a strategy for negotiations and for the decisions that need to be made after the divorce is final. A lawyer may also offer representation during negotiations and court appearances, helping their client to focus on their own and their family’s emotional well-being.