You hear plenty about failed marriages, yet no one talks about a failed divorce. No one can stop you if you want a divorce, yet ending your marriage is only part of it. For a divorce to succeed, you need to put yourself in a strong position for life alone.
Planning is essential to building a new future after divorce, and if you do not do enough, it decreases the chance you get the outcomes you need to make the future more straightforward.
5 things people often overlook in a divorce
Here are some things that people often overlook when getting a divorce:
- Debt: You will need to divide debts as well as assets in a divorce and debt. Total what you own, then subtract what you owe — it may leave you with far less than you thought.
- The cost of living alone: If you are divorcing a partner who cannot control their spending, you may be able to reduce your costs by divorcing. Yet, dropping from two incomes to one has a big effect on most people.
- Children: Kids are not cheap to own, and like a used car, they may demand more of your money as they age. A child support agreement that just about covers feeding a skinny 10-year-old will come up short when your son turns into a hungry teenager. Plan long-term too, and consider putting joint money aside during divorce to fund college.
- Taxes: This can be important if you have significant assets. When and how you transfer money can raise or decrease your tax bill.
- Old age: While divorce may reduce the chance your spouse sends you to an early grave, it can also hurt your future financial security. You need to find out how divorce will affect your health insurance entitlement and things such as pensions.
There is a lot to think about when preparing for a divorce, and getting the right legal advice will be crucial to securing a successful future.