There’s no doubt that a California divorce is emotionally painful for both parties involved. But the financial and lifestyle pains can be equally as tough when the divorce is made official. Whether you are receiving or paying child support or alimony, you’re going to have to make some changes to your spending and money management habits.
Property, debt, housing, and overall finances are at the mercy of the divorce court during the proceedings, and the odds are that both sides will walk away feeling like they made sacrifices.
The financial constraints brought on by a California divorce are magnified by a bad economy, but there are still effective ways to rebuild yourself financially, even in the worst of times. A few pieces of advice for post-divorce money management are especially useful during an economic slump, but they are just as valuable in good economic times.
- Assess your situation, and seek some help
You have the best understanding of where your finances and credit stand after your divorce is completed. But an independent voice, such as a financial advisor, can help you through tough decisions and act as a guide as you look towards your financial future. It’s always a good idea to consult a respected opinion when you are unsure where to start with rebuilding your finances. - Sacrifice outside of the divorce payments
At this point it’s clear that you’re making some hard sacrifices to accommodate your spouse in your new post-California divorce life. But setting an even stricter budget that takes into consideration the current economic climate will ease your transition. A common rule of thumb is to attempt to “live within your means” if you weren’t already doing so. - Make property costs a necessary evaluation
Often times, one or both parties in a California divorce can become attached to the shared house because they want the children to feel comfortable, get nostalgic, etc. The problem is that a big house costs more than just a mortgage, as utilities, property taxes, and insurance can be expensive for a large home. The reality is that children would prefer their parents’ involvement in their lives over a big house. - Stay clear headed
Divorce’s emotional damage can sometimes creep into your budget, as feeling overwhelmed by new financial responsibilities can keep you from making rational money decisions. Much like with emotional coping, don’t be afraid to seek help from those closest to you if you are feeling unsure of what lies ahead for you financially.
It’s inevitable that property and finances will be divided in a divorce, which only adds to post-divorce insecurities and fears. A good lawyer, financial advisor, family support system, and state of mind effectively keep those concerns to a minimum because it is beneficial to lean on people who care during a tough time in your life.
