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How to minimize the financial impact of a divorce

On Behalf of | Aug 22, 2021 | Divorce

When you get married, you go into the union thinking it will be forever. However, statistics show that this is not the case for all married couples. No matter which partner decides it is time to end the marriage, or even if it is an amicable decision, there are financial matters that must be managed. In Kentucky, they can become very complicated and may end up costing both of you a significant amount of money. These tips can help you reduce the financial impact of a divorce, allowing you both to move on without damaging your financial health.

Start planning right away

Once you have made the decision to divorce, begin talking about the financial matters immediately. Items you may want to collect are:

  • Assets
  • Benefit information
  • Liabilities
  • Pay stubs
  • Tax returns

If your soon-to-be ex-spouse handled the finances, it is critical that you collect this information early in the divorce process so your attorney knows what there is to work with.

Think financially not emotionally

During a divorce it may be difficult to think with your head rather than your heart. One divorce tip is to look back calmly at your financial life as a couple to see where you stand. You will need to divide up assets, including your house, cars, bank accounts, investments and retirement plans. It is easy to get caught up in the emotion of a divorce and fight for something that is really not worth the hassle. If you were living in your grandmother’s house, that is something to fight for, but you may not want to argue over the recliner you bought on a whim one afternoon simply because your ex-spouse loves it.

Credit and budgeting

If you were a stay-at-home spouse, it is possible you have no credit of your own or it may be limited. Although financial experts recommend each spouse creating their own credit, if you have not done that during the marriage, you want to start doing that now. If you are the spouse who will be responsible for child support and alimony, it is time to develop a budget that will allow you to meet your financial obligations while still paying court-ordered expenses.