Divorce is generally an expensive endeavor. Therefore, people who are heading toward divorce should prepare themselves for the financial ramifications as much as possible before it takes place. According to The Balance, divorce expenses extend beyond the initial legal and court fees. The spouse who will not have primary custody of the children should alter his or her budget to accommodate future child support payments, as well as potential alimony for the former spouse. Divorce may also result in a loss of some assets by one or both spouses. Since Virginia is an equitable distribution state, the court will determine the division of assets. These include the obvious items such as a home and vehicles, but it also encompasses investments, valuable items in the home and even insurance policies.
The Week offers some tips for recent divorcees who are trying to establish a new budget. When it comes to child support, it may be beneficial to explore alternative options. For example, if it appears that the former spouse will not utilize the money appropriately, it may be possible to pay support directly to health care providers or other sources on behalf of the children, rather than to the parent. That way, the one who pays has assurance that the money is being used for its intended purpose.
Secondly, it is wise not to let emotions dictate the distribution of assets. Spouses who are still emotionally connected to the other may be tempted to give up more than necessary, and this decision may be detrimental in the future. Even if the divorce is amicable, both spouses should be realistic about their financial future, and seek compensation accordingly.
Lastly, newly divorced people should create a budget for their new lifestyle. Rather than reacting to their new financial situation, they should be proactive about how their money will be used. It may be necessary to purchase new items for the children, as well as alimony and child support. Therefore, the budget should allow for those expenses.