Divorce is an unpleasant reality for many couples when they end their marriage. In addition to the emotional fallout, both sides will have to worry about managing finances after divorce. One person in the couple will likely have to move out of their home, and both will have to plan to pay their bills without joint income.
In the following article, we at Delaware Title Loans, Inc. outline financial tips for divorce to allow you to stay on your feet when dealing with the costs of divorce. We also outline how divorce can lead to unexpected costs you may not be able to afford and how an online title loan can allow you to take advantage of emergency cash available to pay for urgent bills.
What Are Nine Tips For Divorce Financial Advice?
After dealing with the emotional pain caused by a divorce, you will have to begin considering your new financial reality. You no longer have someone else’s income to rely upon for daily essentials, and you may have to figure out how to pay for new living arrangements, alimony, attorney costs, and childcare costs.
The following are nine tips for managing finances after divorce:
1. Hire A Divorce Attorney
While the process of divorce can be daunting, it's important to remember that you're not alone. Legal proceedings for asset division and child custody can be stressful, but with a divorce attorney by your side, you have a knowledgeable advocate to help you navigate these changes.
A lot of these negotiations can affect your finances, so it’s important to have someone in your corner who can work to help you get what you desire. Hiring a divorce attorney can help you get what you feel you deserve in divorce negotiations. While you must plan to pay their attorney costs, the guidance they can provide with asset division and child custody negotiations is worth it.
2. Make Sure You Itemize Your Possessions
Itemizing your possessions is a crucial aspect of divorce financial advice. You must divide your belongings with your spouse during the divorce process. It's essential to create a comprehensive list of every item in your home. Taking pictures of these items to accompany the list can further enhance your preparedness.
You should make a list of the items you and your spouse own together and the items you own individually. This will help make it easier to divide your possessions later.
3. Handling Asset Division
Asset division after divorcing will determine how the assets shared with you and your former partner will be divided now that the divorce is finalized. Some assets that must be divided include your home, cars, investments, retirement accounts, etc.
This process can have a major effect on your life. For example, let’s say you and your partner share one vehicle. If your partner receives the vehicle in the asset division, you must prepare to either buy a new vehicle or come up with other transportation methods.
One factor you should consider is marital assets vs. separate assets. Martial assets are those that the couple acquired together, whereas separate assets are those that each person in the couple had before marriage. It’s likely for each person to maintain their separate assets, whereas the marital assets will be divided fairly and equitably but not necessarily equally.
4. Create A Child Custody Agreement
One of the unfortunate realities of divorce for couples who have children is they need to determine who will retain custody. During divorce negotiations, you and your ex-partner must determine who gets custody of the children, and you must devise a plan to ensure your children’s needs are met.
This agreement can affect your finances whether you retain custody of your child or not. If you get custody, you must determine how you will pay for childcare costs with only one income stream. If you do not get custody, you must financially plan to support your child and prepare for weekend visits.
5. Negotiate Alimony Payments
Part of child custody negotiations is determining alimony payments. This is a payment the higher-earning spouse must pay to the lower-earning spouse after divorcing to ensure they can maintain the quality of life they had during marriage. This payment can help them afford their bills and living arrangements.
Child support payments can also be factored into alimony. If the lower-earning spouse keeps custody of the children, the higher-earning spouse must pay child support to ensure the children’s needs are met. If you have to pay alimony, you must prioritize this expense, especially if the money goes toward supporting your children.
6. Prepare For New Living Arrangements
Depending on how the asset division process goes, your spouse might get the house or apartment you were living in together. This can be one of the most challenging parts of managing finances after divorce, as you may have to come up with new living arrangements in a short period of time.
Paying for a new apartment or house can be a large expense, especially if you have to pay alimony payments. You can work with a financial advisor to determine what type of home is affordable based on your budget.
While you may be tempted to get a home as good as your previous home with your partner, it may be financially prudent to get a smaller place to live, as you may live there alone for the time being. However, you also must find a place that can accommodate your children if you get custody or for space for them when they come to visit on weekends or holidays.
7. Create A Budget For Financial Planning
Now that you have to live independently, you should make a new budget for financial planning to account for your new circumstances. You may have had a budget with your former spouse, but your financial circumstances have changed. Your new budget must account for your new expenses and lack of income from your spouse.
In your new budget, you must account for some of the above costs, such as lawyer fees, alimony, child support, and rent/mortgage of your new home. This new financial reality may be a difficult adjustment, so it may be worth it to look for ways to cut your spending to afford your new expenses. Some ways to cut spending include buying groceries at home, avoiding eating out, and canceling unused subscriptions.
8. Continue To Make Loan Payments To Protect Your Credit Score
Something that can get lost in the shuffle when handling divorce money matters is your loan payments, such as for student loans, auto insurance, and home loans. Loan lenders will likely not adjust your loan payments because you are going through a divorce. You must ensure you continue to make your payments on time to avoid incurring late fees.
Failing to make payments on time during this stressful period in your life can affect your credit, as missed payments can reduce your score. This can affect your ability to get a home loan or car loan. Avoid these issues by accounting for loan payments in your budget and automating your payments never to miss a due date.
9. Organize Your Paperwork
The final piece of divorce financial advice is going to be to gather all of your legal and financial paperwork into one place. Keeping all of this in a binder for easy access is a good idea. The documents you gather should include your marriage documents, tax records, business documents, end-of-life plans, and real estate paperwork.
Other important records might include bank statements, retirement accounts, loans, insurance documents, and any credit card statements you have. This information will all be important during the divorce process, so you should ensure it is readily accessible.
Getting Divorce Finances Help With Delaware Title Loans, Inc.
Divorce will have an impact on your finances no matter what. If you find that you need to pay for an emergency expense that you do not have the money to cover, Delaware Title Loans, Inc. has emergency cash available.
We offer Delaware car title loans to those needing emergency money for unexpected expenses. You can receive $300 to $15,000 for your urgent expenses by using your car title as collateral for the loan.
The advantages of getting a car title loan with Delaware Title Loans, Inc. include:
- Keeping your car while you pay off the loan
- Approval for those with good, bad, or nonexistent credit
- Cash deposited into your account the same or the next business day
- No store visit required
What Is The Process For Getting A Title Loan In Delaware After Divorcing?
At Delaware Title Loans, Inc., we allow you to start the fast and easy process online. Fill out our online form, and one of your friendly representatives will call you to discuss how to get approved. They will meet with you at a location of your choosing, such as your home or office, to verify your required documents.
The required items you need for a DE car title loan include:
- Your driver’s license or another valid form of government-issued photo ID
- The lien-free title to your vehicle in your name
- Your vehicle for inspection
After verifying your items and inspecting your vehicle, they can determine the loan amount you can get approved for. You can ask questions, sign the loan document, and receive your emergency cash within one business day.
Contact Delaware Title Loans, Inc. To Help Cover Emergency Divorce Costs Today!
Managing divorce money matters can be challenging, especially when handling the emotional impact of your divorce. Following the divorce financial advice in the above tips can help you manage your finances after divorce.
However, unexpected costs can arise that you cannot pay, which is where a car title loan from Delaware Title Loans, Inc. can help. Head to our homepage and fill out the online inquiry form to begin the fast and easy process of gaining approval for emergency cash to help pay urgent bills.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
