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Category: Financial Impact of Divorce

How to Handle Financial Stress in a Marriage

Financial stress in a marriage is one of the leading reasons for divorce. Financial stress can affect almost every part of your life. If one partner comes into a relationship with more or less money, if one partner is a bigger spender, or if you are in debt, it can lead to a lot of anxiety. Begin by educating yourself on how to be financially savvy. Talk about money often with your spouse. It shouldn’t be a secret in your relationship. Know how much money is coming in and going out so that you can make a budget together. And finally, take baby steps. If you are drowning in debt, set a small goal and go from there. Hopefully, you’ll be able to build up savings and establish healthy spending habits so that financial stress doesn’t lead to relationship problems.

How to Handle Financial Stress in a Marriage: Don’t Let it Tear You Apart

Educate Yourself

The first important step to handling financial stress in a marriage is to educate yourself on how to be financially savvy. Learn how budgeting works and how different types of retirement plans can benefit you. Speak to a financial advisor, or take a class online to help you understand the ins and outs of being financially literate.

Talk About Money

Another way to help handle financial stress in a marriage is to not let money be a secret between you. You should talk about money often together. Even if one partner makes more or less than the other, you should both be included in important financial discussions. Both partners should have a firm understanding of your financial health as a couple. In addition, both partners need to have a say in how finances are handled.

Know Your In/Out

It can help you manage financial stress in a marriage if you have a clear budget. The best way to do this is to have a detailed picture of the money coming in versus the money going out. For example, for a month or two, track all of your spending and all of the money that you bring in. You might be surprised at how much you spend on things you don’t need. Then, make a budget that takes into account as many expenses and possible future expenses as you can remember. You’ll still have unexpected things come up, but hopefully, you’ll be better prepared for them.

Take Baby Steps

Finally, one last way to help manage financial stress in a marriage is to take baby steps when it comes to your financial health. If you are in debt or struggling, try to pinpoint one quick way to save a bit of money each month. You don’t have to solve your entire financial problem at once. Take it little by little. Start with an emergency fund. Next, begin to work on getting rid of debt by building a budget and sticking to it.

Managing the financial stress in a marriage can be difficult, but it is so important. Oftentimes financial stress can lead to marital problems, anxiety, depression, arguments, and even divorce. If you are suffering from financial stress, try to educate yourself on healthy spending. Then, sit down and talk about money with your spouse. You both need to be on the same page when it comes to your financial health as a couple. Get a clear picture of your spending by making a list of money coming in and going out. From there, create a budget and stick to it that gives you small attainable saving goals so that little by little you build your wealth. Hopefully, you’ll be able to tackle any debt that you have as a couple and learn to have a healthier relationship with your finances.

How-to Find a Post-Divorce Apartment

Following your divorce, you may need to start getting ready to move. Finding a new home can be both difficult and expensive. As a result, many people opt for a post-divorce apartment instead. If you’re in the market for an apartment, there’s a few things to consider while you’re searching…

How-to Find a Post-Divorce Apartment: Key Factors

Budget accordingly

One of the most important things to remember when looking for a post-divorce apartment is your budget. Your divorce may have left a bit of an impact on your finances. You may also need to completely redo your past budget. Therefore, you need to make sure your new apartment won’t break the bank.

Remember that there’s more to your apartment’s expenses than just rent. You’ll also have to consider costs like groceries and utilities as well. When you’re looking at an apartment, be sure to ask what is or isn’t included, and what other extra costs they may have.

Proximity to others

You should also consider how close your apartment is to others important to you. After your divorce, your friends and family are going to still be an important source of divorce. That’s why it may be good to find a place close-by to them. This makes it easy for them to come over and for you to spend time with them.

If you’re a parent, then you’ll especially want to give some consideration to your kids. It may be important to find a place which isn’t too far from your other co-parent to make things easier. You may also want to think about if your apartment will have enough space for your kids should they stay over there.

Future goals

Something you don’t want to forget to consider when looking for a post-divorce apartment is what your future plans are. For instance, consider what kind of job you want to work down the line. Will your apartment be close by to those opportunities? If not, then you may want to view this as just a temporary steppingstone.

Of course, you should also think about if you want to buy a new home. Some people like to stay in their apartment for a few years before settling down in a house again. Still, if you want to move into a new home sooner than that, you probably won’t want a super-long lease.

Prenups and Postnups: What’s the Difference?

If you are engaged and discussing financials, you might be wondering what the difference is between prenuptial and postnuptial agreements. Prenups and postnups both determine how a couple will divide their assets in the event of a divorce. The biggest difference is that prenups occur before marriage and postnups occur after a couple is married. A couple usually considers these types of agreements if one person is bringing a lot more wealth to the relationship and wants to protect those assets. Or if one is expecting to inherit large sums of money. Although both have their critics, many find that these types of agreements are the best way to protect your financial wealth.

Prenups and Postnups: What’s the Difference and Do You Need One?

What is a Prenup?

Prenups and postnups are very similar in concept, they just occur at different times. A prenuptial is an agreement between two prospective spouses that determines how their assets will be divided if they divorce. A lot of people feel that a prenup is anti-romantic. They think that it means a couple is already assuming they’ll divorce before they even get married. However, in the US, 50% of marriages end in divorce. Realistically, prenups are a wise choice to protect your financial security.

Who Needs a Prenup?

A couple might discuss prenups and postnups if one partner is bringing more money into the marriage than the other. Similarly, if one has a large estate or is going to inherit a lot of money, they may want one. A prenup prevents a couple from going through a long, drawn-out divorce if they decide to end their marriage. Prenups are especially common for people entering their second, third, or fourth marriages.

What is a Postnup?

Prenups and postnups are very similar, however, a postnup occurs after a couple marries. Other than timing, it’s basically the same as a prenuptial agreement. These have become more common in recent years. They are now legal in all 50 states. Like a prenup, a postnup decides how your assets will be divided in the case of your marriage ending. Similar to prenups, they don’t make any concessions regarding your children or future children.

Who Needs a Postnup?

Since prenups and postnups are so similar, you might be wondering why some opt for postnups. The main reason is simple convenience. Often, the planning stage of an engagement is so stressful and busy that a couple simply doesn’t have time to sit down and draw up a prenup. If this is the case, they’ll often decide to do a postnup instead. This is also an option for couples who feel that the conversation will be awkward and would rather wait until after they marry to have it. Like a prenup, postnups are encouraged if partners are bringing significantly different amounts of wealth into a marriage.

The bottom line is that prenups and postnups are very similar. The only difference between them is that prenuptial take place before marriage and postnuptials occur after the couple says “I do.” However, both of them are legal agreements that spell out what will happen to financial assets in the case of a divorce. If you decide that you and your partner should come to an agreement on either a prenup or postnup, you should consult an experienced attorney. They’ll help guide you through the process and make sure that you are protected financially in the case of your marriage dissolving. Hopefully, you’ll never need to go through the stress of a divorce, but if you do, having a prenup or postnup will make the process much easier.

Prepare Your Finances for Divorce

Divorce is an expensive endeavor. You need to prepare your finances for divorce before you’ve even started the process. Both you and your partner should have representation by an attorney that will be able to help you navigate the divorce. You’ll want to start tracking your spending before you even begin proceedings. Next, you’ll want to gather documentation for everything finance-related. And it’s always a good idea to wait to make big financial decisions until the divorce is finalized. Preparing ahead of time will hopefully help make your divorce less complicated and less drawn-out.

Prepare Your Finances for Divorce: Get Everything in Order

Find an Attorney

The first step to prepare your finances for divorce is to enlist the help of an experienced attorney. Every aspect of divorce is confusing and complicated. But the financials can be especially overwhelming. An attorney will help you navigate all the decisions, and might bring up things that you wouldn’t have even known to ask for. Hopefully, you’ll only go through the divorce process one time, so you’ll want somebody with tons of experiences on your side representing your best interests.

Track Your Budget

Before you even begin the process you should prepare your finances for divorce by tracking your budget and spending. You can start this before you’ve even told your partner you want a divorce. Keep a list of money coming in and money going out for several months so that you have a good sense of where every dime goes each month. You don’t need to change your spending habits, just track them. And remember to include things that seem like one-time expenses like car repairs or a broken refrigerator. Tracking your budget will give your attorney a great overview of your spending and will allow them to know how to best represent your interests. It will also help the judge determine how to split your assets.

Gather Documentation

The next step you want to take to prepare your finances for divorce is to gather evidence of your assets. You’ll want records of your bank accounts, mortgages, investments, and statements. If your divorce is not an amicable one, your partner may try to hide these documents from you. So it’s best to prepare as early as possible and gather all of this early in the proceedings. Know that banks and other institutions are allowed to tell your spouse that you’ve asked for the info if you share the accounts. You’ll give all of this to your attorney so they can get a clear picture of your financial history.

Wait to Make Financial Decisions

Finally, an important tip to remember when you want to prepare your finances for divorce is to wait to make big financial decisions until it’s over. This is because you won’t really know how your assets will be divided until the process has ended. Therefore, you might have more or less money to use on financial decisions than you thought. You’ll also want to wait to change any wills, beneficiary documents, and insurance policies until after the divorce is finalized.

The prospect of going through a divorce is daunting, but it is helpful to prepare your finances for divorce as soon as you can. Enlist the help of an attorney early on. They’ll be able to help you navigate the process. It’s a great idea to start tracking your budget before you’ve even approached the subject with your spouse. You’ll also want to gather any documentation of your finances. And finally, remember not to make big financial decisions or changes until after the divorce is over. That way, you’ll know how everything shakes out and will know where you stand financially. Hopefully, with these tips, you’ll be able to handle the financial aspects of divorce without being overwhelmed.

The Pros and Cons of a Prenup Agreement

Prenuptial agreements are a hot-button topic in the wedding world. There are several pros and cons of a prenup agreement that you should consider before discussing one with your partner. They can be a way of securing financial stability for the future. However, often they are seen as a romance killer and can cause prickly feelings between partners. If you’re wanting to approach the conversation about prenups, bring it up early in your engagement. Be willing to hear your partner’s concerns, and be open to negotiations. Hopefully, if you decide to go the route of a prenup, you’ll be able to come to an agreement that works for both parties.

The Pros and Cons of a Prenup Agreement: Should I Ask my Partner for One?

What is a Prenup Agreement

When considering the pros and cons of a prenup agreement, it’s important to fully understand what they are. A prenuptial agreement is a signed contract between two people who want to marry. The agreement spells out exactly what would happen to their financial assets in a divorce. It’s a way to prepare for the financial future if anything were to go wrong in a marriage. You should each have your own representation. Make sure an experienced attorney creates the prenup, and that you both have proof of your representation. Make sure and have the prenup notarized.

Positives of Prenup Agreement

There are many pros and cons of a prenup agreement. The most important positive is that a prenup creates a set guideline for your financial future in the event of a divorce. For example, it can lay out what happens with jointly owned property. Another positive is that it establishes that you and your partner can talk about finances early on in your marriage. Unfortunately, money problems are one of the most common reasons for divorce. Therefore, discussing finances upfront sets a good pattern for tackling money issues together. A prenup can also protect your children’s assets from a previous marriage. In addition, a prenup will protect any money you’ve accumulated on your own before marriage.

Cons of a Prenup Agreement

When considering the pros and cons of a prenup agreement, it’s important to remember that they are controversial. Many people feel that prenups are bad luck in an engagement. They look at them as if you’re preparing for a divorce before you’re even married. In addition, some partners can feel attacked or judged if you present them with a prenup. This is because it makes them feel like you value your wealth over their feelings. Prenups can give the impression that you don’t believe the marriage will last forever.

How to Approach the Conversation

If you’ve weighed the pros and cons of a prenup agreement and decided that you want to ask for one, it’s best to start the conversation early. Don’t spring a prenup on your partner the day before your marriage. Instead, begin the conversation early on in your engagement. Use it as a way of showing that you’re comfortable discussing finances with each other. Remember that your partner might have strong feelings about prenups, and reassure them of your commitment. Be open to hearing their concerns. You should both consult attorneys if you decide to move forward with a prenup. Be prepared to negotiate the terms.

There are significant pros and cons of a prenup agreement to think about. While nobody wants to go into a marriage thinking of divorce, it is very common. If you’re a practical person, you might see the positives of preparing for your financial future as necessary in case a divorce happens. However, the cons of a prenup are that they can make your partner feel as though you aren’t committed. Try to approach the conversation calmly and early on in your engagement. Give your partner time to think things through and negotiate. Hopefully, even if you do sign a prenup, you’ll never need to think about it again.

How-to Communicate with Your Spouse About Money

Money is a such an integral part of our lives. According to Dave Ramsey, “Money is the number one issue married couples fight about, and it’s consistently a leading cause of divorce. This is why working through your money issues in a healthy way is actually more valuable than the money itself.” As you can see, it is incredibly important to be able to have an open, honest, and constructive dialogue about finances with your partner. In order to help prevent both financial and marital issues, you need to learn how to communicate with your spouse about money.

How-to Communicate with Your Spouse About Money: Honest Conversations

Lay it Out

First, in order to better communicate with your spouse about money, you will need to discuss the role of money in your relationship. You will need to know how each of your views money, and whether you prioritize spending or saving. Have an honest conversation about each of your philosophies about using credit cards and how much debt you are both willing to live with. Be open about any debt you are currently carrying, as keeping that a secret could end up hurting you.

Also determine how much money you realistically need to live comfortably, and go over any expected expenses or financial gains in the near future. It’s good to know both your own answers, but also where your partner stands on thee questions. If you do disagree on any points, it is important to know the reasonings behind the discrepancies.

Create Goals and Discuss Financial Responsibility

You will also want to start to discuss short and long-term financial goals. What changes can you make to set yourself up for financial success in the coming months or years? What steps can you take to prepare for the long-term future? These are all important things to lay out when you begin to communicate with your spouse about money.

It is also good to decide who who will be in charge of finances and how big decisions will be made. For example, how will you make decisions about major purchases? Or, who will be in charge of paying the bills? Another pain point in marriages is how you manage your money individually and and as a couple. Decide if you will allow individual freedom for purchases. Also, will you have joint banking accounts, or separate ones? You may also decide on a mix of both joint and individual.

Be Proactive

It helps to have these conversations before you end up running into a problem. It is best if you are able to communicate with your spouse about money from the very beginning. However, if you have not yet had those conversations, it is never too late to start.

Keep in mind that you need to continuously revisit these financial conversations. Just because you discussed them at the start of your relationship doesn’t mean that you shouldn’t have them again. If you’ve been with your partner for a long time, consider taking a fresh look at your finances. Do you have any large expenses coming up? What about setting yourself up for retirement one day? Address financial issues often and with respect and understanding. This will help you both make wise decisions about your finances as a couple.

Sell or Keep the Family Home: Post-Divorce

After a divorce, it can be difficult to decide if you should sell or keep the family home. There are plenty of factors that play into this. Everyone’s situation will be different…

Sell or Keep the Family Home: Factors to Consider

Finances

Your financial situation will play a big role in deciding if you should sell or keep the family home after a divorce. Based on your situation, you may have the option to sell the home and split the profit. Another option may be to buy out your spouse to keep the house. You will need to determine which is a better option for you financially.

You may have to speak with a financial advisor or an accountant to see which option is going to be the best financially. Keep in mind there are a lot of financial responsibilities that come with owning a house. You don’t want to start a new chapter of your life with expenses and debt you can’t handle. 

Eligibility for a Mortgage 

Additionally, while deciding if you should sell or keep the family home, you should check to see if you could qualify for a mortgage, if needed. In some cases, one spouse may not be approved to carry a mortgage on their own. This is especially true if they were a non-income earning spouse. You certainly don’t want to make a decision based on thinking you could easily buy another house without making sure you are eligible for a mortgage.

Children

If you have children, especially ones in school, they could be a factor in deciding if you should sell or keep the family home. It can be difficult to uproot children and move them to a different school. Therefore, this may play a role in you deciding to keep you in your current home. Research the schools in the new area you may be considering so that you can make an informed decision. 

A New Start

Sometimes, you may just need a brand new start. A home can hold a lot of memories and emotions. Selling a home can give you the opportunity for a new start. Whether that move is locally, or long-distance, moving into a completely new home may be a deciding factor in whether or not to sell or keep the family home. 

Divorce comes with many difficult decisions to make. Deciding if you should keep or sell the family home could be one of them. Take your time, do your research, and think it through so that you make sure you’re making the right decision.

Home Business Post-Divorce: Making Moves

Many people struggle with going back to work after their divorce. For some, they’d rather try and do things their way with a home business post-divorce. While it can be tricky, it can also open up a new, and potentially lucrative, chapter in your life…

Home Business Post-Divorce: How To Prep

Find your niche

When starting a home business post-divorce, you first need to find your niche. The appeal of a home-based business is that it lets you appeal to markets which other major brands may look over. Where they may not see a profit, you could potentially have many loyal customers who are willing to pay for what you have to offer.

However, you need to make sure it’s something which you can properly apply your skills to. You don’t want to invest all your money into something you have no prior knowledge about! Take things slowly, do your research, and find an area you think you can tap into. That way, you avoid potentially getting stuck in an over-saturated or nonexistent market.

Take your time

It’s important to not rush into creating your home business post-divorce. Trying to simply rush and get things going will more than likely set your venture up for failure. It may take some time and require you to do some traditional work in the meantime as you save funds and get things off the ground.

The two major things you want to have are a good workspace at home and enough funds to get up and running. A good home workspace will encourage you to view your work as serious, even when at the house. Additionally, having plenty of funds will ensure you can cover your costs, especially in the early months when you’re trying to get sales going.

Don’t forget to take breaks

It can be exciting and stressful to set up a home business post-divorce. Still, you have to remember to not push yourself too hard. After all, you’re still recovering from all the stress and changes that came with your divorce.

That’s why you’ll want to make sure you take time to relax. Your mental and physically health should always take priority. It’s okay if it takes longer than expected to get your business running. Starting later but much more prepared is better than rushing and only scraping by!

Post-Divorce Debt: Management Methods

Divorce can sometimes be costly, and as such it helps to prepare a bit financially. Still, even with a good plan, you might find yourself with some post-divorce debt. This debt is definitely something you’ll want to get under control. There’s a few things you can do to help get it down to a manageable level…

Post-Divorce Debt: Financial Impact of Divorce

Re-evaluate your budget

Your post-divorce debt is probably going to require you to take a new look at your budget. As you go away from a double-income household to a single-income one, your past budget may not work as well as it used to. Plus, you’ll probably have some additional expenses to manage. Among these will be your debt.

Therefore, take the time and plan out a potential new budget. Consider your necessary expenses, and how much income you make. This can help you see if you can cut spending in one area to help with debt payments, or if you may need to consider looking for a better-paying job.

Set up payment plans

Another helpful way to handle post-divorce debt is by having payment plans. Not paying your debt at all can quickly add up as extra interest is accumulated. Now, some places may give forgiveness for one or two months missed. Still, if it becomes a habit, then your debt will continue to mount and things like your credit will suffer.

Instead, you can see about setting up a payment plan. Usually, these will let you set up automatic payments for debt payments every month. You may also be able to set up adjusted payments. This can see you making smaller, more manageable monthly payments, but making more of them over a longer period of time.

Consider all your strategies

Of course, the best thing to do with post-divorce debt is to pay it off. However, it’s entirely possible that you just don’t have the extra money to do so. Rather than just let those bills pile up, you should take the time to consider all of your potential options.

For example, if you have good credit, you may want to think about debt consolidation. This puts all your debt together and can lower your interest rate. You might also want to consider debt management, settlement, and in extreme cases, bankruptcy. Just note that these can have a negative impact on your credit in exchange for helping you control or remove your debt.