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    Getting a Divorce? 5 Ways to Ensure It's Not a Financial Disaster

    Divorce and MoneyDivorce and MoneyBy: Raine Parker

    Although we never like to think or talk about it, divorce is an all too common occurrence to which no marriage is immune. If you are considering a divorce or are currently going through with one, emotions are probably running high and out-of-control. Of course, divorce is a devastating experience, but approaching it as level-headedly as possible will ensure that you don't make mistakes that could spell doom for your financial future. Here are a few tips:

    1. Make a realistic budget and determine how your standard of living will change and what you can do to adjust to these changes.


    It's pretty much unavoidable if you are getting a divorce and living separately - two households are more costly to maintain than one. As such, your standard of living will likely be negatively impacted after the divorce. If you aren't used to working with a family budget, work with a financial planner who specializes in divorce to determine how you will live afterwards and what you can do to close that standard of living gap, whether it's getting a higher paying job, selling assets, or moving in with a roommate.

    2. Close all joint bank accounts before the divorce and begin opening separate ones.

    It's important to close joint bank and credit accounts before your divorce is finalized since it helps avoid sharing debt unnecessarily. You'll still have to pay off anything left in the joint account once it's closed, but the sooner you close the shared account, the better off you'll be protecting your assets in the end. Also, opening separate accounts while the divorce is still in the process of being finalized is advisable, especially for those who haven't had to build credit on their own.

    3. Check your credit report before the divorce.

    It's important to check your credit report from all three credit reporting agencies before you begin divorce proceedings or while you are in the process of getting one. This is simply because if there are any mistakes or disputes, you'll want to settle them before the divorce is finalized to avoid any headaches or hassles later on.

    4. Sell your house and other valuable items or property if it's financially prudent.

    It's very common for women to want to hold on to the house for emotional reasons. However, if it's not financially feasible, if you'll struggle to make payments or are persuaded to keep the house in exchange for something else more pragmatic like retirement savings, think with your head and not with your heart. This goes, too, for any other assets that have substantial financial value. While this is easier said than done, you don't want to be in a position where you'll be ruining your financial future simply because you can't let go.

    5. Be fair. Compromising instead of arguing could save you thousands in legal fees.

    Figuring out all the financial details during a divorce is complicated enough. When you have substantial animosity toward your spouse, you may duke it out in court, racking up thousands of dollars in legal fees. If you can settle matters privately, it's best to take this route, or else you'll end up with way more debt and money worries than it's worth. Also, try to be fair to your spouse. As much as you may initially want to turn a divorce into an all out war, the financial consequences for your spouse could be crippling, leaving you with a sense of life-long guilt that will be difficult to reconcile later down the road, especially if children are involved.

    Divorce should always be a final recourse, not only because it's costly but because it's emotionally taxing as well. Still, divorce can sometimes be the best or most feasible option for all involved. If you try your best to be wise, educating yourself about the future consequences, both material and emotional, you'll come out of the whole ordeal with secure finances and a new lease on life. For more information on divorce and money, be sure to check out this book: "Divorce and Money: How to Make the Best Financial Decisions During Divorce."

    This post was contributed by
    Raine Parker, who specializes in writing about accounting degree topics.

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    15 comments

    • J P  •  11 months ago
      And as one reader Commented; Divorce courts are very Gender Bias Against Men. He could not have been more Accurate. You will be receiving A Vasectomy without you even noticing it. But OMG you will know it when its over. Most Judges Suck up to women so they can continue to get re-elected year after year. Have one Judge be fair to a man, and it will be his last year on the Bench. A lot of women commit Adultery, guess what, the courts do not care, in fact most women will not Hesitate to sleep with their lawyer or Judge. If you suspect that, Just shoot yourself in the head because you have no chance of getting a fair shake, much less winning. Yes, it Sucks BAD.
    • J P  •  11 months ago
      My Advise to All, and I have had way too Much Experience at it, Do everything, and I mean everything to Avoid having two Attorneys. Remember, Attorney's are not your friends, will take your money and very seldom return calls, explain things in a timely fashion and will actually contribute to your case dragging on so as to charge you more money. while you two Idiots are busy Hating each other, you are spending what little money you have left on your two lousy Attorneys. Try and split all your possessions before you even go see an attorney, Including your house if possible. that way after all your stuff is split to your satisfaction, guess what, not much left to argue about. time to go see an attorney and file for disillusion, a great word to describe most marriages. Do not make attorneys rich. All courts are set up so there is no DO IT YOURSELF Divorce court. its a terrible thing to go through.
    • Bubba_Scruggs  •  11 months ago
      Forget the divorce....do it the old-fashioned way.....with a gun!!!!! L0L!!!!!!!!!!!!!
    • geniusandinsanitywalkdown ...  •  11 months ago
      I may live to see the day when men are treated EQUALLY in divorce court, but it seems highly unlikely in the gynocentric c--- ry we live in
    • geniusandinsanitywalkdown ...  •  11 months ago
      Newt Gingrrich just commented recently on our family courts.....how does he describe them?
      .
      ‘Extreme Anti-Male Bias’
    • geniusandinsanitywalkdown ...  •  11 months ago
      Women demand equal pay at work, but they demand to pay zero child support and no custody for the menz (you can see your kids a few days a week, maybe-we all know the courts will enforce payment of child support, but they will never enforce visitation for the father).
    • geniusandinsanitywalkdown ...  •  11 months ago
      Family courts generally allow fit loving fathers only a few days a month with their children. This is not only harmful to children since it’s so important level of involvement by both parents in their lives, but it’s also a terrible civil rights violation when the government dictates how much time a father or mother can spend with his or her children. What are your thoughts on family court reform?
    • geniusandinsanitywalkdown ...  •  11 months ago
      When men are treated unfairly in Family Court (denied their civil rights), the gender warriors are not to be found (unless, of course, they are busy suggesting that men dont deserve civil rights with respect to their children in the first place).
    • geniusandinsanitywalkdown ...  •  11 months ago
      Divorce is a great time to make up a false accusation against your spouse (the family courts dont require proof and their anti-male bias will make them believe you no matter how eggregious and unproven your accusation is).
    • geniusandinsanitywalkdown ...  •  11 months ago
      The beautiful thing about divorce court is they NEVER punish a FALSE accusation no matter how obvious of a lie it is (women get to lie with impunity in divorce and family court and you can be sure they will be rewarded for their deception)
    • SO GLAD THIS IS FINALLY O ...  •  11 months ago
      Men are a---- that deserve everything they get especially after they use you and get the best years of your life than they lies and cheat and thinks its ok, put your emotions/feelings aside its not about that person anymore or how you used to feel its about protecting yourself and any children involved and focusing on rebuilding your life. Y'all NOT friends anymore because friends don't hurt friends it's just someone that you use to sleep with and now its over time to move on. Make sure you protect yourself in the beginning no matter the cost then to have to REGRET it later HIRE A LAWYER a shark.
    • ole rooster  •  1 year 1 month ago
      You have to interview a good lawyer that will work in your interests...you are not here to become friends...
      If you have been served papers you are already on the defensive...the law is in the plaintif's corner and you had better be prepared to play hard ball....especially men. Get over the hurt and get on the offensive side of the divorce asap. You have to fight for everthing you get or she will take it all....Usually a older, many battles in the courtroom, attorney is you best bet. Let your spouse go with the younger untested lawyer.
      You are not friends anymore, just someone who you used to love. Raid the joint accounts at the first sign of infidelity, pay your bills but protect yourself too. They have already made up their mind when the hammer falls. You are usually reeling from the hurt but you have to get up and go asap.
    • Loren  •  1 year 1 month ago
      There are two things that every man needs before getting married, a prenup and a vascetomy.
    • Just a thought  •  1 year 1 month ago
      Hire an attorney that specilizes in divorce,that knows all and I mean all the laws pertaining to the divorce in your state,you won't lose and she walks away with what she brought into the marriage,NOTHING LOL LOL Ahhhhhhhhhh those were the days.
    • Landscaper  •  1 year 1 month ago
      i love to argue... to the death.....

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