One of the most complex elements of a divorce involves your finances. Most people understand that when they divorce, their financial life has to change too. If you lived in a two-income household or if your spouse made the majority of the income, you may wonder what the future looks like and what you need to prepare for.
According to U.S. News, the expenses related to divorce depend on your specific situation and how you plan to carry out the split.
If your income becomes cut in half after a divorce, you need to consider your living expenses. You cannot keep living the same way you did before. Instead, you need to look at your bills, your lifestyle and the amount of money you spend per month and think about whether you need to start a new budget or set aside savings for an emergency. Of course, consider spousal support and child support too. Whether you plan to pay for or receive support, you can insert that into your future budget.
If you and your former spouse own a house together, you must consider whether you want to keep or sell the home. When you sell the home, you can split the assets. However, to put your home on the market, you and your spouse may need to determine how you plan to pay for any remodeling or repairs the house needs ahead of time.
When it comes to a divorce, contested divorces tend to cost more. If you and your spouse cannot agree on how to divvy the finances, you may find yourself under more stress due to battling back and forth about money. Working together tends to have a better financial outcome.