If you are the father and main breadwinner in your family, and you or your wife decide to end your marriage, you face the reality of providing for two homes. This can be a daunting thought, especially if you are used to barely getting by. As you prepare for your divorce and determine how to come out of it as unscathed as possible, there are a few things you can do to financially prepare.
1. Know your assets up front
It is not just about what is in your bank account or what you have in cashYour assets can extend to real estate, personal property, business interests, retirement assets, cash value life insurance and liquid assets. Before the divorce process, put together a list of your assets to determine that they are split fairly.
2. Make your own budget
If you are the non-custodial parent and moving out of the family home, what kind of budget do you need to get by? You will want a basic idea about what your costs for rent, food, transportation and divorce-related expenses will be. Your spouse should be doing the same to determine exactly how to make the finances work once you both split.
3. Consider mediation
Many who are going through a divorce turn instead to mediation to avoid a lengthy legal process that can be terribly expensive. Mediation also allows you both to give your opinions and make decisions about your future rather than rely on the court. If you want a less expensive option for divorce, mediation may work.
4. Be prepared for a drop in income
Your income is going to drop as you navigate the financial waters of divorce. Prepare a fund to fall back on if possible to avoid going into debt when you get divorced.
If you have determined that it is time to end your marriage, remember that both you and your spouse needs protection and someone to help. We encourage you to seek the advice of an attorney with experience in mediation immediately.