One of the most significant changes you go through when you divorce is figuring out finances. You might be going from a household with two incomes to a home with one. Sitting down to create a budget can help you immensely during this time. Not only does this show you where you stand, it also gives you the chance to make changes that benefit your single life.
Your budget needs to be accurate if it is going to help you. It might be necessary to track expenses for a while, so you know exactly where your money is going. Ideally, you will do this before you go into a mediation session to divide marital property.
When you divide the property from the marriage, you have to determine which assets will cost money to keep up. This could be in the form of insurance payments, taxes, maintenance costs or similar expenses. Before you agree to accept an asset, you can see if you have room in your budget to cover those.
The property division process also forces you to split debts. Your budget will come in handy for this, too. If you see that your budget is getting tight, you might consider asking for accounts that come with lower monthly payments over a more extended period so that there isn’t as much of a strain on you to pay it. You may increase what you send to the creditor if you can afford more.
You have to protect your interests throughout the divorce process, so think carefully about the options you have. The goal of your property division settlement should be to start your single life with the best financial standing possible.