What to Know About Pre-Divorce Financial Planning

 Posted on July 12, 2024 in Divorce

Divorce is not just an emotional challenge but a significant financial transition. Proper financial planning before initiating a divorce can offer you the clarity and control needed to navigate this major life change effectively. By evaluating your fixed expenses and expected income, you can gain a comprehensive understanding of how the divorce will impact your financial future, helping you make better-informed decisions. Talk with an Illinois divorce attorney to learn more about how you can set yourself up for financial success before proceedings begin in your divorce.

Assessing Fixed Expenses Pre-Divorce

Fixed expenses are those that remain relatively constant month after month, such as mortgage payments, car loans, insurance premiums, and utility bills. By proactively reviewing these expenses, you can identify your essential financial obligations and better understand your baseline budget.

Start by listing all your fixed expenses and categorizing them as either necessary or not. This exercise can very quickly reveal areas where you might need to cut back post-divorce, ensuring that your essential needs are met while still maintaining a reasonable quality of life.

Assessing Your Expected Income

Understanding your expected income is crucial in developing a post-divorce financial plan. Begin by assessing your current sources of income, including your salary, bonuses, investment returns, and potential spousal or child support.

Consider any changes that might arise due to the divorce, such as the possibility of entering the workforce if you have been a stay-at-home spouse or are transitioning to a single-income household. Accurate income projections will help you create a realistic budget and set financial goals for your post-divorce life.

Examples of Financial Professionals Who Can Work with Your Attorney

Working with financial professionals, such as divorce financial planners or certified public accountants (CPAs), can provide valuable insight into your situation. They can help you analyze your financial situation, negotiate more favorable settlements, and ensure you are making the absolute best decisions for your future. Think of the outside professionals you hire for your divorce as part of your team. For a team to be successful, it requires a collective effort from all involved.

Contact a DuPage County, IL Divorce Attorney

Ultimately, pre-divorce planning is crucial in minimizing the financial turmoil that can occur during divorce. By thoroughly reviewing your fixed expenses and expected income, you can put yourself in a position to secure financial stability after your divorce has concluded. For guidance that will exceed your expectations and help make the process more tolerable, our Wheaton, IL divorce lawyers with The Stogsdill Law Firm, P.C. can help. Call 630-462-9500 to schedule a private consultation.