Divorce and Your Wallet: Financial Self-Sufficiency before and after the Split
Regardless of where you stand with money matters throughout the course of your marriage, the moment your relationship comes to an end, your financial security can change drastically, in a short period of time. Whether you have been accustomed to a very comfortable life or have always struggled to make ends meet, the moment you undergo divorce, your financial well-being is exposed to a number of risks, and many of those risks have the potential to affect your bank account and the overall quality of your life for many years to come.
Many individuals are able to prepare for the financial implications of divorce well ahead of time, months before they even begin divorce proceedings. Others are left scrambling at the last minute or after the split to figure out how to put the pieces together and provide for themselves. Whatever your divorce circumstances, planning is key. Here are some ways you can take steps toward successfully standing on your own feet once your marriage is over:
1.Explore potential maintenance options - Once referred to as alimony, maintenance is a form of spousal support that requires the spouse who earns the larger income to provide payments to the other spouse. In the state of Illinois, not all lesser-earning spouses are guaranteed maintenance, and granted maintenance is usually temporary, but it is important to at least speak with an attorney to inquire about your potential options for receiving payments to ensure you aren’t missing out on funds that could help you provide for yourself. The court will look at a number of different factors when deciding whether or not to award maintenance payments, so do not rule out pursuing a maintenance order until you get all the facts.
2. Create a financial snapshot - In order to know where you stand before and after your divorce, it is essential to create a general snapshot of your finances. This means gathering as many details as possible and assembling lists of any and all debts, assets, and newly opened accounts. You will need a clear picture of what you owe versus the income you will bring in on your own, without your spouse, in order to sit down with a financial planner and create a new budget for your post-divorce lifestyle.
3. Establish a new budget - Speaking of budgeting, it is never too early to sit down and draft a revised budget based on your independent finances. Consider where you can cut back, identify your priorities, and utilize the financial snapshot you gathered to shape new spending and saving plans that will allow you the freedom you will need to both survive and thrive. This is where these steps come together; in order to create an effective budget, you will need a solid idea of how much money you will have access to, with all factors taken into account.
In addition to these preparations, experts also recommend establishing your own credit, as the sooner you can begin building a foundation for yourself, apart from your former spouse, the better. To gain insight and collect the resources you need to protect your financial rights after divorce, make an appointment to speak with a knowledgeable Kane County divorce attorney today. Call Shaw Family Law, P.C. at 630-584-5550 for your personal consultation.