How to Financially Recover After Divorce
Going through a divorce is challenging, both emotionally and financially. As collaborative divorce professionals, we have seen how this process can be smoother and more amicable than a court-litigated divorce. The key is working with a neutral financial mediator to divide assets, review your financial portfolio and suggest your options for the future.
Being honest about your finances during divorce sets the stage for a more amicable separation. A financial neutral can help both partners understand their situation clearly, even if one hasn’t been the primary earner or financial manager.
The collaborative divorce approach offers privacy and fosters mutual agreements between spouses. It allows both partners to understand their financial landscape before and after divorce. This transparency is crucial for making informed financial decisions.
Developing a post-divorce budget and retirement plan during the divorce process is important. This helps spouses visualize separate financial futures and make necessary adjustments. It’s also important to avoid emotional spending during this time. Buying expensive items to numb feelings won’t help in the long run. It will only add to the stress load.
After the divorce, consider opening new accounts in your name and reviewing your credit report. Create a realistic monthly budget and stick to it. If possible, prioritize eliminating debt over unnecessary purchases. Focus on paying off debts strategically. Start with high-interest debts or smaller amounts to build momentum.
Remember, financial recovery after divorce is a gradual process. It may take time, but with patience and careful planning, you can recover and thrive financially after your divorce.
Collaborative Practice San Diego is a nonprofit, multi-disciplinary referral network of independent professionals of attorneys, mental health professionals and financial advisors working together to learn, practice, and promote Collaborative processes for problem-solving and the peaceful resolution of family law issues, with an eye toward preserving the emotional, as well as the financial assets of the family.
Contact us today to see how we can help you and your spouse work towards a peaceful resolution for your marriage.
Note: This information is general in nature and should not be construed as legal/financial/tax/or mental health advice. You should work with your attorney, financial, mental health or tax professional to determine what will work best for your situation.
