budgeting

How to Handle Home Expenses During a Divorce

If you’re faced with the prospect of divorce, you may feel overwhelmed by all the changes in your life. Although you may need time to grieve what is past, you must also find a way to move forward – especially if you have children. To survive, you must take stock of your current and future financial status. Here are some considerations you should make for you and your family to find a way to make economic sense of your “new normal.”

Use an Attorney to Guide You

Your best asset in navigating a divorce is getting a divorce lawyer. They can analyze your financial position and ensure you and your children will get your needs met. Lawyers often represent both spouses, and the decisions made during the transition period can usually help generate the final financial settlement terms.

Consider Your Stage of Life

Some decisions you make for your financial survival will depend on your age and the age of your children. According to Today’s Homeowner, in a U.S. home, the median age is 39. At that age, an entry-level position won’t be practical, as you would be vying for a job against younger prospects. If you have a college degree, you can network with people in your field of study and perhaps secure a position in that industry.

Examine Your Current Bills

Make a list of your recurring bills and expenses, so you know what your financial responsibilities will be. It may be possible for you and your spouse
to agree at the time you split up. If not, and if your spouse was the one paying the bills, you will need an attorney to compel your spouse to continue paying the basic expenses for you and your family. If you can find a job, compare your future income to your bills to figure out how much more you will need to afford for life as a divorcee.

Determine New Details

When you are getting a divorce, there may be aspects of the split that may not immediately occur to you. For example, if your or your children’s health insurance was covered by a policy in your ex-spouse’s name, you should purchase some insurance for yourself and your children. If you don’t already have a bank account, you should open one soon. You’ll also need a credit card – even if you must begin with a prepaid card to establish credit.

Establish Your Residence

If you and your spouse owned a home together, only one of you will live there after the divorce. In many divorces, the parent with primary custody of the children will live in the home. If there is a dispute about home residence, the home’s value could be part of the final financial settlement in the divorce. To clarify, according to The Zebra, the average standard home is valued at $100 to $200 per square foot.

Anticipate the Outcome

As the months pass after you and your spouse separate, you will learn how to survive with your new financial status. When the final divorce judgment is issued, you will receive a written court order regarding who owns and lives in the home you once shared with your spouse. If one spouse has been ordered to pay alimony, the amount will be spelled out in the court orders. Some final decrees will direct the wife to resume her maiden name; if so, you must change your name on your financial documents.

A divorce will mean many changes in your life, and the financial changes will dictate many details of your new way of living. The changes that have resulted from the divorce may also bring you and your family emotional challenges. If so, you and your family should seek the help of a counselor or clergy member. A counselor can help you and your family to thrive in your new financial reality.