A divorce financial analyst poses the question: can you afford to divorce?
In truth, sometimes the question is: can you afford / stand / survive not divorcing.
In which case the question should be: how can you become able to afford to divorce?
For most people, they probably can afford to divorce. But they will probably benefit from, if not have to, make some financial adjustments to their lifestyle.
Hopefully, the positive emotional and psychological adjustments in their lives will more than make up for the possibly less positive financial adjustments.
But everyone should go into a divorce situation with their eyes wide open, having considered how their lives will change and what the costs will be.
Some of the questions to ponder:
- post-divorce budget:
expenses – basic necessities, necessary amenities, dispensable luxuries
income from all sources – work, child support, alimony, etc. less taxes
leaving surplus or deficit
- tradeoffs in property division: are you better off to stay in the house or pass on it for liquid assets (this is more complicated if you are upside down, as so many people are these days)
- consider your financial future a few years down the road, and your path there