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How can you prepare financially for divorce?

One of your concerns when you're getting a divorce may be how to survive the financial impact a divorce can have. The standard of living you're used to may not be one you can maintain in the future due to losing your spouse's income, for example, and that could impact you significantly.

What can you do to be better prepared for the financial implications of divorce? First, make sure you understand that there's a potential for your income to drop. You should focus on developing a budget, so you know exactly how much you need and how much income you have. You can even take time to have someone else review your budget to see if it seems accurate.

It's a good idea to know what you have, also. Get your account statements in order and look into your assets. You'll need to know which assets you have when you're working on your divorce settlement. You don't want to miss anything, because it could end up costing you financially.

It's most important to know what your financial needs are when you're starting the divorce process. It's a good idea to know how much you make and how much your assets could cost you or earn in the long term. For example, if you have a home that you'd like but won't be able to afford, it might be a better idea to sell or rent the home for additional income.

These are just a few things to consider before you commit to a settlement during a divorce. With the right financial decisions, you can have a good outlook in the future.

Source: Institute for Divorce Financial Analysts, "Surviving Financially After Divorce," Fadi Baradihi, accessed April 21, 2017

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