Divorce is one of the most life-changing things to happen to an adult. It completely shifts your perspective on life, your relationships and your daily habits. It makes complete sense that it also alters your finances.
Most people agree that divorces can be financially-devastating between settlements, attorneys and property division. But there are ways to minimize the damage and allow yourself to grow financially from the heartbreaking experience.
Prioritize and organize
It’s easy to panic over your finances and assets during a divorce proceeding. However, you should use that energy to organize all your accounts, possessions and investments. Once you have a full list in place, prioritize what you need to keep and what you are willing to settle on.
Taking this step puts you in a realistic mindset for the courtroom discussions. You won’t have to spend weeks fighting over a small savings account that you don’t need. It especially useful in Ohio because the state follows equitable division – dividing shared property equally, not necessarily fairly.
Establish a new budget
It’s common in marriage to share money between two spouses. You probably opened a joint banking account, credit cards and a retirement plan. After a separation, you need to reevaluate your accounts and create a new budget based on your sole income.
Establishing a budget right away prevents you from spending too much money after a divorce and protect your future finances. It also allows you to take time to consider new expenses, such as alimony or rent payments, that you may not handle previously.
Evaluate your retirement plans
Once you divide all your marital property, consider revisiting your retirement plans because you may have lost some investments through the divorce or included your spouse in a retirement program. Checking in your retirement allows you to change up any investment or stock options you previously had or reconsider where you want to retire.
Divorce is challenging enough on its own but changing how you look at your finances is incredibly tricky. Don’t get wrapped up into losing money during your divorce. Instead, take it one step at a time and rely on a support system of family and friends to help you move forward into the future.