Managing Money in Divorce

Aug 8, 2012 by

It is no secret that money problems can lead to divorce for many couples. The stress of living on a tight income and budget can be especially difficult for younger couples who don’t have many years together accumulated yet. Although financial difficulties are not usually the only single element causing a divorce, they can certainly help things along if a marriage is already about to disintegrate.

Because most marriages seem to do better when incomes are stable; the extreme emotional highs and lows encountered when dealing with extreme financial peaks and valleys in life can be devastating to marriages. In that light, both good financial fortune and bad cash situations can contribute to divorce if a couple is not ready to handle them. If one spouse is a spender and the other a saver, instead of balancing each other out, they will often just come to resent each other’s relationship with money whatever it might be.

If one spouse attempts to exert solo control over the family income, even if they are the major wage earner in the marriage, the other spouse is bound to resent the set-up over time as many couples have different values where money is concerned and all too often, different values concerning money equals conflict. If one spouse has an addictive behavior that puts a financial strain on the marriage, a divorce disaster is almost certain even if the marriage is “good” apart from the one spouse’s problem. This is almost always true in cases of gambling addiction where those married to gamblers must pull the plug on the marriage in order to prevent certain eventual financial ruin in what may be an otherwise “OK” marriage.

You will need to know the status of your financial obligations and assets at all times when going through a divorce, and that means getting your finances in order and continuing to keep track of all including all bills, bank statements and any other important financial papers. Once you have assembled and organized your financial documents it will be easier to determine your true financial situation and will aid in creating an effective plan for the future as well.

After you know your actual expenses you might even be able to reduce some costs without sacrificing too much and all areas of non-essential spending can usually be reduced almost immediately. Most people going through a divorce usually do not have enough money available to cover every unforeseen emergency, but put some cash aside if you can manage it. It’s easier to maintain control and make progress toward building a new single life if you have put a little money aside in advance.

 

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