Your Finances: Can I Afford Divorce?

Can I afford a divorce?

It’s a common question people ask themselves when considering divorce. It might even be the most common question. 

It’s completely natural to feel overwhelmed when you start to consider the “what ifs” of divorce, especially with children and shared assets in the mix. 

But rest assured, you aren’t financially trapped. And there are some things you can do today to start planning and preparing for the financial impact of divorce.

Create a comprehensive budget and balance sheet

List your income and expenses, as well as assets (the house, retirement accounts, savings) and liabilities (mortgages, loans, credit cards). Seeing the numbers laid out side by side will help you understand what you can realistically afford post-divorce and where the shortfalls may be. 

To support you in this process, check out our worksheet, What You Own, What You Owe: An Inventory Of Assets And Liabilities, and our Divorce-Budget Template.

Decide: Keep or sell

Staying in the marital home can be comforting for the kids...