This week we are going to talk about preparing for the financial changes that come with a divorce. These changes are some of the most important to deal with ahead of time because your finances impact every aspect of your life including your ability to provide your kids with the things that they need. Some of the financial changes that you will need to plan ahead for include living on a single income and planning for large expenses.
While you were married you most likely saved for your retirement in a shared IRA account or at least counted on your spouse’s retirement savings to cover a portion of your retirement expenses. Now that you are getting a divorce you will either not have access to their retirement savings, or you will have less of those retirement assets to count on. This means that you will need to plan for your own retirement expenses, and may need to play catch up with your savings.
While planning for your retirement is important, it can take a backseat to more pressing financial issues like your day to day living expense. According to the Woman’s Divorce Blog it is important to set up a budget prior to getting divorced. This budget will identify your assets, income, debts and liabilities. By preparing this budget ahead of time you will know how much money you will have to work with, what you will be able to afford and you will have time to make adjustments to your income or expenses before you get divorced.
