One of the most heavily impacted areas during and after a divorce are finances. There are things that Hawaii residents can do to better prepare their finances for divorce.
How are finances impacted during a divorce?
The divorce process by itself is often expensive. Lawyer and court room fees can really eat into your existing finances, especially in a messy divorce. Divorce can also impact your future finances for years to come. Going from dual incomes to a single income can be quite an adjustment even without child support or alimony payments.
How do you plan for your finances after divorce?
One of the best things that you can do for your current and future finances is to analyze your budget. Figure out how much you spend each month versus what you’re bringing in alone.
A big mistake that people make with this part of financial planning is not accounting for new bills. For example, your health insurance might go up if you were on your spouse’s plan, so you should account for that new bill.
It’s also important to look at what you alone are bringing in and not what you could be potentially making with alimony payments. A lawyer or accountant may help with this part if needed.
Try to divide assets fairly
It’s important to make sure that you keep enough assets to provide for yourself after the divorce. For example, you shouldn’t give away your retirement accounts or make unpredictable investments during a divorce.
What else to prepare for the financial consequences of divorce
It will take time to adjust to such big changes, but there are things that you can do to help prepare for it. During the divorce, it’s important to go through all of your documents and debts beforehand. This will allow you to accurately prepare for your life after the divorce.