Common Divorce Fear: Making It Financially~ 3 min read

Divorce brings a lot of changes. One common fear a common fear people may experience is regarding your financial future. Managing your finances on your own might seem challenging, but with the right approach and resources, you can overcome this fear and achieve financial independence. Here are six practical steps to help you handle this situation effectively.

1. Understand Your Financial Situation
   The first step in addressing any financial fears during your divorce is gaining a clear understanding of your current financial situation. Start by taking an inventory of all your assets and liabilities. This includes bank accounts, investments, real estate, debts, and any other financial resources. Knowing what you own and what you owe is key in planning your financial future.  If you do not have access to these items now, don’t worry, we can help you obtain these items to better understand your finances. 
2. Create a Budget
   Many people going through a divorce have never created a budget or tracked their spending. Developing a budget will ensure that you can manage your finances independently. Begin by listing your sources of income and monthly expenses. Categorize your expenses into essentials like housing, utilities, groceries, and non-essentials like dining out and entertainment. This will give you a clear picture of your financial needs and help you identify areas where you can cut back if necessary.
3. Seek Professional Help
   If the process of understanding your finances is overwhelming, consider seeking professional help. Financial professionals can provide invaluable assistance in explaining your financial situation, helping you create a budget, and advising you on complex financial matters such as tax consequences and trust management. In Collaborative Divorce, the financial professional acts as neutral party, ensuring both sides receive accurate and comprehensive financial information.
4. Collaborative Divorce Financial Planning
   One of the benefits of Collaborative Divorce is the support of a team that works together to ensure the financial well-being of the entire family. This approach aims to prevent significant differences in living standards between households post-divorce, ensuring that children do not experience financial instability. The collaborative team, including financial professionals, attorneys, and other specialists, work together to develop a fair and sustainable financial plan for both parties.
5. Building Financial Confidence
   Financial confidence involves more than just understanding your current finances. It also means developing the skills and knowledge necessary to manage your money effectively. If you are unfamiliar with basic financial tasks such as paying bills, setting up accounts, or writing checks, don’t hesitate to ask for help. There are resources and professionals available who can guide you through these tasks and help you build your financial literacy.
6. Plan for the Future
   Once you have a handle on your current financial situation and a budget in place, it is time to plan for your future. Consider your long-term financial goals and how you can achieve them. This might include saving for retirement, funding your children’s education, or investing in your personal development. Setting clear financial goals will give you direction and motivation as you move forward.

Final Thoughts

In facing your financial fears during a divorce, it is important to remember that you are not alone. Resources and professionals are available to help you through this process and secure your financial future. By taking proactive steps to understand your finances, create a budget, seek professional help, and plan for the future, you can overcome those financial fears and thrive independently.

Contact Family Ally

At Family Ally, we understand the financial challenges that come with divorce. If you have any questions or need legal assistance regarding divorce or any other family law matter, please contact Jennifer Piper at 314-449-9800 to schedule a consultation. 

Family Ally is located at 130 S. Bemiston Ave., Suite 608, St. Louis, MO 63105.