Financial Literacy – Take Small Steps and Remember the Big Picture
In most marriages there is one person who handles the budget, pays the bills and balances the checkbook – and it’s not always the principal wage earner. In a divorce situation, this can leave the other spouse feeling very vulnerable, and fear can cause exaggerated responses and sometimes costly decisions.
In this article we’ll help you take small steps that will help you get better organized and give you clearer direction, so you continue to make forward progress without losing sight of what really matters.
“You must gain control over your money or the lack of it will forever control you.”
So, what really matters?
Every family creates their own unique financial structure. Every marriage has a total amount of assets and debts, which means your divorce team cannot create money that isn’t there. So, the first thing that really matters is – What is Real and Possible and What Isn’t. Make sure you know exactly what you have and what you don’t. Figure out where it is and what is in your name. If you’re not sure where to look for this information, please download the Free Divorce Financial Fitness Kit which will help get you started. (Small Step #1)
Work with a trusted, experienced financial professional as soon as possible so you don’t enter the divorce with unrealistic financial expectations.
“It’s good to have money and the things that money can buy, but it’s good too to check up once in awhile and make sure that you haven’t lost the things that money can’t buy.”
What else really matters? You need to plan now for your post-divorce life. Commit right now, today, to taking the high road. (Small Step #2) If your spouse wants conflict, don’t engage. You always get to control when and how you respond to demands. Control how much conflict you contribute to the divorce, and you can save time, money, and resources for your post-divorce live.
The fact is that divorce costs money and it can get expensive. Traditional, litigated divorce costs on average $15-25,000 per spouse and that’s before a trial, should it get that far. The good news is, there are lots of less expensive, more effective ways available to divorce these days and we can help you find the one that’s right for you. Download DivorceTown Roadmap (Small Step #3)
Working with an experienced, settlement minded team made up of a core group of legal, financial and emotional divorce experts can actually save you time, energy and money. How is this possible? Because your financial expert is helping you understand the money and the best ways to untie your marital financial knots, and your coach, counselor or therapist is helping you manage your emotions, so you are only paying your attorney to do limited legal work. Many divorce professionals who work in this cooperative type of arrangement work on a flat fee basis (yes, even attorneys) and we encourage working with professionals who use transparent billing practices.
Take advantage of as many free and low-cost resources that are available to you. (Small Step #4) Education is power and while the goal should be to divorce as amicably as possible, your power will be in knowing your decisions are based on financial facts and not fictitious expectations. Your strength also comes from taking care of your mental health during the divorce process, so you make financial decisions with a level head and a calm spirit.
So, listen to those podcasts, watch those webinars, read the articles and even join a support group. One word of caution: Make sure that your media sources are trusted and reliable. Look for professionals with solid reputations and years of divorce experience. It’s always nice to hear a juicy personal story but always verify information before acting on it.
Remember that you don’t have to take all these steps at once, nor should you. Make a plan. Keep your eye on the big picture and take one small step each day that will move your forward in your divorce process.
Don’t get discouraged if things don’t go as fast or as well as you’d hoped or would like. A good divorce team will help you manage your expectations, keep you informed, and guide you so you won’t panic at little detours or speedbumps along the way.
“Financial literacy is just as important in life as the other basics.”
So, What Really Matters? You – Your Family – Your Finances.
That’s what matters. Understand them and look after them now and you’ll enjoy them long into the future. Every small step you take now gets you closer to the Big Picture, so paint it your way.