The decision to divorce means that you’re going to have to divide everything you amassed during the marriage. While some of this involves an emotional aspect, a more challenging aspect of it is having to figure out how to make the finances work now. Some people mistakenly think that individuals who are going through a high-asset divorce don’t have to worry about this; however, this problem can plague everyone who divorces.
When you and your ex split up, you are going to have to rely on the income you can bring in. You might be able to work out your living expenses to where they are less than what you had when you were in a two-income home, but this could be challenging. For this reason, you need to sit down with your budget when you first learn the marriage is ending.
As you set your budget, focus on your necessary expenses. These include things like rent or mortgage payments, utilities, car payment, insurance and similar regular bills. You also need to plan for food. You’ll also have to include the expenses that you’re responsible for that are related to the divorce.
One thing that you can’t do is think that you’ll be able to rely on credit to make it in the early days. The divorce is likely going to cause your credit score to drop because of the lowered income. Your debt-to-income ratio is likely going to rise, which could mean that creditors don’t extend offers to you in the same way they did when you were married.
Trying to get your new single life off on the right foot is important. The property division settlement might be a way for you to help make the transition as smooth as possible. Be sure that you’re making decisions that are in your best interests during this process.