How can you recover financially after divorce in California?
Couples in California who are going through a divorce should review their finances to know where and how to make changes.
It is no secret that getting a divorce in California can take a toll on your finances, even if the split is amicable. For that reason, divorcing couples should have a firm understanding of how to manage their money and rebuild their financial house after a divorce.
Do not wait
One of the first things to do during a divorce is to start planning your financial future. While you likely have a lot on your plate during this time, renovating your financial house will only prove beneficial. Give yourself a headstart and every advantage possible.
Know what you have got
Take a long and honest look at the money you have got coming in and your new expenses once your divorce is final. Write down your assets as well as your liabilities and get an idea of what will change and what will stay the same. Know which expense you will take on by yourself and which you will have to deal with alongside your ex-spouse.
Know where you are going
As you are listing your assets and debts, think of any financial goals you might have. For instance, you might want to change up your retirement savings plan, put more money back in savings or buy a smaller house. No matter your financial goals, know what they are and how you are going to achieve them as a newly divorced person.
Resolve joint accounts and debts
You and your soon-to-be ex-spouse likely have accounts that are in both your names. Go ahead and decide how you will deal with them as well as any debts you have accrued together. This might be a good time to turn to a financial expert who is familiar with working with divorce couples so you go about everything the right way and to avoid potential missteps that can set you back.
Learn your new means and live within them
Your financial situation will undoubtedly change after your divorce, so now is a good time to create a new budget. As you write down your income, liabilities and assets, start thinking about groceries, bills, debts, savings and anything else you will be solely responsible for now. While some expenses might lessen, others might increase. Know where and when to tighten the purse strings, and do not hesitate to reach out to financial professionals for some expert assistance.
Be sure to devote some time and attention to your finances as you go through a divorce in California. Consult with an attorney for additional tips and to decide which options are best for you and your financial future.