DIVORCE AND YOUR FINANCES.
The frequency of divorce in the United States is increasingly more common with statistics predicting close to half of most marriages ending up in a separation of some sort. Furthermore, research indicates that second marriages are more likely to face a divorce or separation than first marriages. Currently, data indicates high divorce rates but the highest cases occurred between 1970 and 1980.
Most common causes of divorce.
Some of the factors that predispose married couples to a divorce include marriage at a young age, pregnancy, premarital childbearing, no religious connection, parents‘ divorce, and lower education and income. These are factors that researchers believe expose most marriages to a higher likelihood of a divorce occurring. However, the most common causes of divorce are infidelity, abuse, unrealistic expectations, addictions, frequent arguing, inequality, and lack of proper preparation and commitment to the marriage.
Commitment plays a critical role in how a marriage works and the likelihood of a divorce occurring. Researchers define it as a standpoint that assists couples in marriage to overcome the challenges and problems they encounter. Furthermore, commitment displays a personal dedication by either couple to identify with their spouse and desire to stay together.
How to handle your finances during a divorce.
Since divorce is financially and emotionally demanding, and parties must prepare their finances ahead of the proceeding to stir them in the best direction. Firstly, you should seek advice from individuals that understand your situation and avoid those that give a general solution. It is best that you consult a certified attorney in your area on financial issues. Secondly, you should track all your expenses and record them since they aid in the post-divorce budget on the splitting of financial needs in the future such as child support.
You should include all expenses outside normal monthly billings such as vacations, electronic replacement, and transitions in childcare. Thirdly, you should gather all financial documentation such as pay stubs, tax returns, loan ledgers, and account statements. You should prepare for any resistance for releasing financial documentation especially for adversarial situations by gathering this information before filing a divorce. Furthermore, you should minimize spending or saving during a divorce and avoid making major financial decisions.
How to build back your finances.
Although healing emotionally might be challenging, you can reverse financial havoc due to divorce by setting small goals, minimize spending, document expenditure, and boost your income. You should set a small achievable goal that will give you more morale as you get closer to the pre-divorce financial health. These goals involve paying off loans and saving in a small amount that does not strain you financially. Additionally, you should look for other more conservative options that do not involve spending money such as staying home instead of a vacation.
You can downsize expenditure by starting a new lifestyle and cutting back on unnecessary expenditures by comparing providers such as electric supplies. Furthermore, you should review your budget and ensure that you can maintain your lifestyle and afford it. Documenting your financial operations will assist you in tracking the expenses, cut them down, and increase your income and savings. A journal will allow you to monitor your financial journey and create a positive mindset through visualization of progress.
Additionally, you should keep a balance sheet to monitor financial progress. After a divorce, you would most likely experience a decrease in the income amount and an increase in expenses. It is therefore imperative to have a balance sheet that will help you to know how much you owe, and thus make goals that will solve this challenge.