Unexpected and largely unwelcome life events can be costly. Certainly, individuals can learn valuable lessons that eventually enhance their lives when they become ill, suffer injury, lose a job or choose to divorce. However, these events are almost always stressful and financially costly in their immediate aftermath. There are not always clear ways to remain financially stable during illness, injury or job loss. However, individuals can take steps to remain financially stable during and in the wake of divorce.
First and most importantly, it is critical to think past the moment and into the future when making divorce-related financial decisions. For example, it may be more cost effective in the immediate to avoid retaining experienced legal counsel and largely completing divorce paperwork by yourself.
However, this decision can result in devastating consequences in the long run. Placing your resources in the care of someone who understands the consequences that certain property division, debt and asset treatment will have upon your future will almost certainly save you a great deal of money over time.
Second, it is important not to let your emotions rule your decisions. Think of your divorce largely as a business decision for your “Rest of my life” company. It is important to compromise in divorce negotiations, but avoid giving in on important assets because of guilt, fatigue or a desire to avoid conflict. Your future self and your financial future need you to fight for what will be important while you can.
Divorce-related financial considerations must be made with a wide lens. There are many things you can do to keep costs low during the process, but all important decisions must be made with the future in mind. A sound financial foundation upon divorce will serve you far better than pinching pennies will during the process itself.
Source: Huffington Post, “Divorce Advice: 23 Small Things That Will Cost You Big Time In Divorce,” Apr. 5, 2013