If you are facing a mid-life divorce, you and your spouse may have significant assets to divide; for example, the marital home, vacation properties, vehicles, investments and retirement accounts.
Surely you can still expect to have a secure financial future—or can you? Here are points to bear in mind as you contemplate life after divorce.
In thinking about the divorce settlement, you may want to keep the main residence or perhaps a vacation home. Look at all the options. A house requires upkeep and the payment of property taxes, which reduce your cash flow. After a divorce, income drops while expenses increase. Receiving a liquid asset like a retirement account in the settlement may be a better choice in terms of your future financial picture.
Changing your lifestyle
Are you employed, or have you spent the majority of your marriage as a stay-at-home mom? If you are still working, divorce may mean that you need to rethink your retirement goal and work longer than you had planned. If your focus has been on raising your children, you may have to consider returning to the workforce. Even if granted alimony, having a second source of income is a prudent idea, especially if, at some point, the main source of income should cease. If having and spending money have never been of concern during your marriage, remember that after the divorce, you may have to do more with less. Make sure you always have enough money by learning to live within your budget.
Consider divorce alternatives
You may as well begin your journey to a secure financial future by saving where you can during the divorce. One option is mediation, an economical alternative to litigation. If you and your spouse can work together to develop an agreement satisfactory to you both, you will save time and money. Also, mediation takes place outside court, so you will have the privacy you no doubt desire.
Divorce is a stressful process accompanied by fear of the unknown. Rely on sound legal guidance to help you prepare for the changes in your life. Learn all you can about your current financial situation, and use that knowledge to make good decisions for your financial future.