For many individuals facing divorce, a common top priority is the sustainment of financial stability both now and for the future. Between property division, bank account splits and child-related arrangements, spouses ending their marriage have more than legal fees to be concerned with. If you are heading into a divorce, it may help you to consider a few tips as you move forward with your financial planning.
Adjusting for the divorce
One move you may want to consider is setting aside money for the divorce as soon as you can. While you may expect there to be administrative and legal costs, you may not realize the ways that a divorce can hit your accounts. Do you have kids? You should set money aside for a babysitter. What’s more, depending on your schedule and form of resolution (trial, arbitration or mediation), a lengthy divorce process may take up your paid time off.
When it comes to the asset division, try to become familiar with Washington state community property division laws. Knowing what you are getting into could help you prepare and ponder on what is best for your divorce. Consider also what is of greater value to you – an asset with long-term financial implications or a sentimental asset like a vehicle? If you can, sit down with your ex-spouse and try to divide up assets. A mutual agreement may be in the financial interest of both parties.
Planning for the future
Depending on the lifestyle you are used to living, you may need to adjust for your future budget. How much are you used to spending on hobbies and social activities? Will you be paying child support? It is one thing to split rent if both spouses bring an income, it is another to take on the bills alone. On a related note, whoever ends up with the family home may need to make significant changes to their expenditures. Taking time to consider your post-divorce expenses may save you money and headaches in the long run.