Managing Your Finances During the Separation Period Before Your Divorce

 Posted on April 29, 2021 in Family Law

Many times, couples do not jump directly from being married to getting divorced. In most cases, a couple who is unhappy with their marriage will go through a period of separation before they file for divorce, even if that separation is not legally recognized. While this can be a good way for couples to determine whether or not they are actually ready for a divorce, it can also be a very important period of time for the couple’s finances. In Wisconsin, marital property is divided using “community property” theories. This means that each spouse is entitled to half of the marital estate, but that the marital estate is composed of all assets that either spouse owns, regardless of when they acquired that asset. Because there are such high stakes when it comes time to divide your property during a divorce, managing your finances prior to that is crucial. If you are currently separated from your spouse but are planning on filing for divorce, here are a few things you should keep in mind during your separation period:

• Understand that your living situation will likely change. Many people do not want to come to terms with it, but after you are divorced, your standard of living is very likely going to change. Many households are dual-income households, meaning both partners work, allowing them to have a lifestyle that cannot usually be maintained with one income.

• Put together and follow a post-divorce budget. Because of this, it is important that you begin to plan for your finances after your divorce is completed. Putting together a budget not only gives you an idea of how much you will need each month to live, but it can also help you understand what your bare minimum needs are when negotiating property division with your spouse. 

• Continue to pay your bills. If you and your spouse have shared debt or other shared bills, your name does not get taken off of them just because you have decided to separate and divorce. You should still pay any debts that have your name on them to prevent them from getting behind and doing damage to your credit.

Our Waukesha County Divorce Attorneys Are Here to Help

Going through a period of separation prior to your divorce can be extremely helpful for many couples, but it can also cause financial issues if you are not careful. At Bucher, Wolff & Sonderhouse, LLP, we can help you understand your financial situation as it pertains to your divorce. Our skilled Waukesha, WI divorce lawyers are here to help you understand how your finances will be handled during your divorce and how you can maintain a healthy financial picture afterward.

Sources:

https://money.usnews.com/money/personal-finance/articles/2016-05-27/managing-your-finances-when-youre-separated

https://www.marriage.com/advice/separation/handle-money-finances-during-separation/

https://docs.legis.wisconsin.gov/statutes/statutes/766