Going through a divorce is never easy. Divorce rates are currently at 50%, and this number shows no signs of slowing down. If you are currently undergoing a divorce, you know how expensive it can be to hire a lawyer, split costs, and lose the ability to pool funds together to maintain the home.
Below are tips that can help you stay above water at home and avoid financial disaster during your divorce.
1. Consider an Uncontested Divorce
If your divorce is uncontested, you and your partner will agree to all divorce decisions and won’t use expensive litigation. An uncontested divorce can help you and your spouse saves money and prevents you from spending thousands on lawyers and court fees.
Uncontested divorces are much more amicable and can help you and your partner split finances and custody healthily. This type of divorce is a good option for you and your children if you and your spouse plan on agreeing to child custody.
2. Gather All Financial Paperwork
If you and your partner are going to fight for custody, alimony, and child support, there will be an inquiry into your spending and savings accounts. You must account all money for, including your spouse’s income, assets, and savings.
Unfortunately, financial documents are not immune to fraud or hacking. In the first half of 2019 alone, over 4 billion records were exposed because of data breaches. Financial records can be among those, so keeping your financial records safe at home is best. Gather all your financial documents and only give access once a court has deemed it necessary.
Keeping your financial records safe and organized can help you get the alimony or child support you need, and also prevent criminals from accessing your most important records.
3. Shop Around Before Selling Your Home
Many couples will need to sell their home as part of the divorce settlement. Selling your home can be incredibly painful, especially if this is the home you share with your spouse and children.
While selling your home might be necessary, you will also need to shop around for the best-selling prices and explore different offers. Around 74.5% of homes sold in 2019 were part of communities that had housing authorities, and these homes usually sell for more than those without an HOA.
If your home has an HOA, know that your home might be more valuable. Your home’s HOA status is just one factor that will determine its overall value. If you want to earn more money at the end of your divorce, keep your options open and continue to explore bids, accepting the highest offer. It’s okay to wait for a bigger offer for your home, so long as you and your partner agree.
4. Create a Budget
A budget can help you plan for spending without a partner. If you and your partner split the cost of the mortgage, car loan, and bills, you will need to create a new budget to account for your partner’s loss of income.
Downsizing your home during a divorce might seem like a hard decision to make, but it’s best to do so for people that need to save money. Besides downsizing a home, creating a budget that works for you and your family for food, gas, clothing, and other home expenses can help you save money.
Stick to your budget and make room for other costs of a divorce, such as lawyer fees, court fees, and future expenses like alimony and child support.
Following these tips above are a great way for you to keep your head above water during a divorce. These tips can help you get the most out of your divorce, have more money to work with after losing your spouse’s income, and help you get through this arduous process.