How to Prepare your Finances for Divorce

The emotional upheaval of a split can affect the financial decisions being made during the divorce process. Even those that start the process amicably all too often see these good intentions go out the window and finances becoming a major sticking point.

 

Financial preparation needed for a divorce


If you are about to start divorce proceedings here are our tips to prepare yourself mentally and practically for the financial separation which is to come. We suggest you start, even before you visit a family law solicitor, by:
•    Tracking your cash flow and establishing a budget
•    Organising your important paperwork

Your solicitor will then need certain information when you instruct them. FYI this is the information we may request, depending on the circumstances, when we take on a client.


Take charge of your financial future


Divorce means change, but it does not have to jeopardise your financial future. Write down and review your financial goals. What do you want your future to look like? You may need to revise your goals to fit your new life. This may mean making some financial adjustments, like reducing debt, cutting back on spending, increasing your retirement timeline, or establishing an investment strategy.


Protect yourself and your family


Developing your future budget will help you to make informed decisions about how to financially manage your new life going forward.

As your relationship and responsibilities change it is important to review your Will to be sure that your assets transfer to the people who are now important to you. Estate planning becomes even more important as a single parent. Consider selecting a guardian for your children and setting money aside to secure their future needs.


Do not let emotions derail your economic well-being


Lastly, do consider your mindset. Be aware you are on a rollercoaster and you may experience a range of strong emotions, often conflicting ones. At the outset try to make a conscious decision not to let your emotions derail your economic well-being.

When you are making financial decisions, we urge you to try and set emotions aside and approach your financial situation rationally.  Negotiating a divorce settlement agreement from a standpoint of grief, spite or anger is usually counter-productive.

If you have any questions relating to the financial implications of divorce or separation, do get in touch either by phone on (01234) 711 701 or by completing our online form. FYI we are family law specialists based in Olney between Milton Keynes and Northampton

  • Parrish Family Law
    Parrish Family Law

    26 High Street South, Olney, Buckinghamshire, MK46 4AA
    DX 51302 Olney

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