Getting a divorce? Here’s how to tackle those money issues

It can be difficult to focus on your finances after a divorce. It is important to face them sooner rather than later.

The reality is going to hit you later, said Niv Persaud, managing director and certified divorce financial analyst with Transition Planning.

Persaud found that lower-earning spouses were surprised by the true costs of living. If they want to keep the house, they often overlook expenses such as lawn care, roof replacement and property taxes.

Persaud created a list of 10 points to help clients become aware of their lifestyle costs.

1. Housing: mortgage, property taxes, home insurance, lawn maintenance, utilities, furnishings, renovations, etc.
2. Transportation: car payment, insurance, maintenance, recreational vehicles, parking, public transportation, Uber/Lyft, etc.
3. Food: dining out, groceries, meal prep services, food delivery, etc.
4. Personal care: grooming, cosmetics, dry cleaning, shopping, etc.
5. Entertainment: travel, social clubs, streaming, concerts, etc.
6. Dependent care: children, pets, aging parents/relatives, etc.
7. Health: medical, dental, vision, hearing, gym memberships, exercise streaming, etc.
8. Gifts: donations, holidays, birthdays, weddings, etc.
9. Miscellaneous: other expenses that do not fit the other categories
10. Savings: spending in the future

Niv Persaud is the author of Transition Planning and Guidance.

Persaud said that people think they will get spousal support for the rest of their lives, but that is not how the legal system works.

She said that it was important to use an attorney from your county because of the different laws in each state.

A certified divorce financial analyst and wealth manager with BDF in Chicago said that the average person doesn't understand that not all assets are created equal.

IRAs and brokerage accounts can have different tax implications.

Financial advisors need to be involved in the divorce process because there are so many financial decisions that could affect the rest of their clients.

They can show different scenarios and the probability of success in covering your post-divorce expenses by looking at allocations in the asset classes of brokerage accounts.

There is an overwhelming number of changes to deal with, according to a certified divorce financial analyst.

She called it the Year of Fear. Financial advisors can help divorcing spouses tackle financial issues.

• Education: Mott often answers basic questions about home equity, the components of a mortgage and how insurance works.
• Consolidating accounts: Advisors handle post-divorce transfer documentation and set accounts up properly (e.g., retirement vs. non-retirement).
• Pre- and post-divorce planning and investing: They work to meet your immediate and long-term goals.

Financial advisors can be called in to help with divorce proceedings. Michael Black is a certified divorce financial analyst and owner of MichaelPhillips Black Wealth Management in Arizona.

Black is a certified divorce financial analyst who exposes the financial implications for different scenarios.

Black said that they don't focus on the most beneficial financial outcome for their clients.

Black performs financial modeling for attorneys and courts to identify the client's post-divorce financial needs and set the financial road map. He said the trickiest part was knowing which assets meet clients' needs.

It is up to the client to advise their attorney on what assets meet their needs if they are not working with a financial advisor.