If you have a tough divorce ahead, you will want to be certain you are ready for the fight. The last thing you want in a contentious divorce is to have your ex blindside you with outrageous demands or damaging accusations you are not prepared to defend. These can alter the outcome of your divorce and leave you struggling for years to come.
Like some going through divorce, you may find yourself growing weary of the fight. This can lead to serious mistakes that could jeopardize your financial future. Even after a civil, mediated divorce, many California couples find their lives are not the same. It is important to understand how a divorce may affect you financially so you can fight for your fair share and prepare for the unavoidable changes.
Seeing beyond the courtroom
Even if you have only been married a short time, chances are you and your spouse have shared the financial burden for most things. Whether you shared a joint bank account or kept yours separate, you probably contributed to the mortgage, bills and debts. Perhaps you have a joint savings plan, investments or a retirement fund. Now that your marriage is ending, you may find that your cash flow decreases since you will have only your income on which to rely. Additionally, you may face these and other financial setbacks:
- Paying for individual plans, such as phones and car insurance, can cost more than you paid as part of a married couple.
- You will no longer have your spouse’s salary to help cover expenses such as car repairs.
- A divorce can cause considerable damage to your retirement savings and investments if you end up splitting them with your spouse.
- Your spouse’s debts and credit history may follow you into your post-divorce life, or you may find you have no credit history at all.
- You may end up having to furnish a new home, including dishes, cleaning supplies and entertainment center, which can involve a great deal of money.
While it may not be possible to avoid every financial burden that results from a divorce, you can take steps to protect yourself as much as possible. It is critical that you fight for a fair separation of joint assets, and that includes uncovering any assets your spouse may be hiding. You want a spousal support order that does not place an undue burden on you, whether you are paying or receiving. These and other factors can be the basis for a sound and stable post-divorce life.