Going through a divorce can play havoc with your finances. Generally, the same amount of money that supported one household must now be divided to support two of them. This often means, at least for a time, each individual’s net worth and household income will be reduced.
If a couple can work together in a Collaborative Divorce process, you can establish new financial goals and create a financial roadmap yourselves. A financial professional will guide you through the process and both spouses will benefit.
How Collaborative Divorce Helps Rebuild Your Finances
During a Collaborative Divorce, you and your spouse work together with a neutral financial professional. The professional will ask you questions about your monthly expenses, about your budget, and discuss with your financial goals are for the future. You both can see what the other one needs and decide together what is in the best interest of each one of you.
Some issues you will want to address include:
- Establish a new individual monthly budgets. When you both work together, a spouse who may pay support to the other spouse can see why that payment is necessary.
- Realistically determine what expenses you can cut back on. For example, you may be able to refinance your car for lower monthly payments. Be careful not to eliminate things that you need for your mental health. An occasional splurge will not break your budget and may be vital to your sense of well-being.
- Make room in your budget to build an emergency fund. You may think this is not possible, there is just not enough money available for you to save. The benefit of working with a financial professional is that the professional will guide you so you can understand how this is not only possible but also necessary.
- Look ahead to the future. Determine how you want your financial future to be, what your retirement years will look like, and take early steps to achieve that goal, even if those steps are baby steps.
Financial Professionals at Heberger & Company Can Help
For more information about how to rebuild your financial situation after your divorce, contact us at Heberger & Company an Accountancy Corporation. We can help whether you are using the Collaborative Divorce process or divorcing by traditional litigation. You may call us at 559-227-9772 to schedule a free consultation.