It is not simply an individual’s living situation that changes with divorce; there are often significant alterations to financial circumstances as well. Making adequate preparations during the divorce proceedings is one way an individual may help lessen the effects of divorce on his or her finances. Approaching divorce negotiations, especially those related to financial matters, with logic and clarity rather than strong emotions makes the entire process go more smoothly.

Forbes states that good financial planning may help lessen the stress of divorce. Among other things, a marriage is a legal agreement, so individuals may do well to view divorce proceedings as the dissolution of a contract. Divorce negotiations reflect legal obligations and financial responsibilities, not necessarily the emotional aspects of the marriage relationship. Forbes also advises individuals to approach negotiations with a solid understanding of their assets, financial contributions during the marriage and credit histories. It is also important for each spouse to have a credit card and bank account in his or her own name. A divorce settlement may take less time when both spouses have thoroughly organized financial records to bring to the table.

Individuals may use the time during the divorce proceedings to prepare for life after the marriage ends. USA Today recommends making a post-divorce budget that accounts for necessities such as a new place to live, transportation, utilities and groceries. It is also essential for individuals to account for potential changes in health insurance and car insurance. Dividing up debt may be one of the more challenging aspects of negotiating a divorce. USA Today states that spouses may shorten the process and improve their post-marriage finances by paying off shared debts before finalizing the divorce.