Once you decide to divorce, it’s up to you to turn your attention to your future financial well-being. It’s not always easy to do with so many other things on your plate. However, neglecting to take action now can cause additional stress in the future.
One thing you need to protect against is too much post-divorce debt. Neglecting to do so can result in a situation in which you’re bogged down with bills you can’t afford to pay, thus forcing you to take drastic measures to make ends meet.
Here are some of the steps you can take to avoid too much debt after divorce:
- Be careful of what you wish for: For example, you may fight to keep the family home, just to realize after your divorce that you can’t afford to make the monthly mortgage payment. You need to think about this upfront.
- Create a post-divorce budget: The budget you used while you were married is no longer useful. You should create a new budget, focused solely on how much you earn and the amount of your monthly expenses.
- Don’t make any big purchases: For example, you may be tempted to purchase a car to make yourself feel better. Even if you need a new vehicle post-divorce, give yourself some time to figure things out before making such a big purchase.
As you move through the divorce process, don’t lose sight of the fact that every decision you make could impact your finances in the future. This is particularly true of property and debt division, so work with your attorney on seeking an agreement that will help you move forward without unnecessary financial struggle.