Tips for Starting Over Financially After Divorce

Recovering financially after a divorce, especially when it’s amicable, requires careful planning and consideration during and after your divorce has been finalized.

The collaborative divorce model, unlike court-litigated divorce, prioritizes mutual agreements and financial transparency, paving the way for a smoother transition.

One crucial step is to choose the collaborative divorce process and work with a neutral financial mediator. This approach helps privacy, fosters amicable agreements, and helps you plan for your financial future post-divorce with the guidance of a financial divorce specialist. More often than not, the financial neutral will be able to offer unique solutions to both of your financial needs in a way that is amicable and considers life after divorce.

Working on a budget and retirement plan after divorce is essential. Avoid impulse spending as a coping mechanism, prioritize debt repayment based on interest rates or amounts, and focus on emotional healing before making significant financial decisions. Think with your head and not your heart. Emotional financial decisions can often be disastrous.

Transparency and honesty in sharing financial information during the divorce process are vital. Utilizing financial neutrality promotes fairness and understanding, making collaborative divorce an attractive option for untangling complex financial situations. Transparency and mediation offer an equal playing field for both spouses, even when one spouse has not been the wage earner or handled the finances. It will also allow spouses to advocate for their future needs.

Following these suggestions and using the collaborative divorce approach, couples can clearly navigate their financial restart, ensuring a more stable and amicable post-divorce transition.

When you utilize the Los Angeles Consensual Dispute Resolution Family Law Association experts, you can rest because you will know that when your divorce is finalized, each party involved, including your children, will be ready to face the future with confidence.

Call us today to learn more about how our members at the LACFLA can help you and your family through the divorce process.

Note: This information is general in nature and should not be construed as legal/financial/tax/or medical advice. You should work with your attorney, financial, medical or tax professional to determine what will work best for your situation.