Getting divorced? It is normal to be concerned about your finances. A survey conducted by the Institute of Divorce Financial Analysts, found that nearly three-quarters of people who are considering divorce have serious worries about their post-separation finances. As a Charleston divorce mediator, I have extensive experience helping people navigate challenging financial matters. In this article, you will find an overview of some of the key considerations for affording to live independently after a divorce in South Carolina.
You Should Carefully Assess Your Pre and Post-Divorce Financial Position
Independent living starts with a clear picture of income and expenses. You need to have a clear and comprehensive picture of your pre and post divorce finances. Notably, South Carolina law requires both spouses to exchange detailed financial declarations during a divorce. Those documents give you a realistic view of what you can afford once the household divides. Income includes everything from wages to bonuses to investment returns to potential spousal support. Of course, after a divorce, your expenses shift because you no longer share housing, utilities, insurance, or food costs. You need a precise budget that reflects the life you will actually live, not the life you lived inside the marriage. That will help you determine how you can live independently following a divorce.
Spousal Support and Asset Division Affect Post-Divorce Affordability
South Carolina courts award alimony based on the statutory factors in S.C. Code § 20-3-130. The court examines income, earning capacity, length of the marriage, childcare duties, and the standard of living during the marriage. Alimony can play a central role in post-divorce affordability for a lower-earning spouse. On the property side, South Carolina uses equitable distribution. The court divides marital assets and debts in a manner it considers fair. Your ability to live independently depends on what you receive and what you must pay. If you are entering divorce mediation, pay careful attention to the financial issues of your divorce, including property division and alimony.
You Can Build a Forward-Looking Financial Plan for Stable Independent Living
The reality is that a divorce forces you to think ahead. You must evaluate the financial choices that support long-term stability. A comprehensive plan can help to put you in the best possible position for stable, independent post-divorce financial living. Here are some things to do:
- Identify nonessential expenses that can be reduced without harming quality of life;
- Review health insurance options once you are no longer covered under your spouse’s plan;
- Assess housing choices that match your budget and commute;
- Revise retirement contributions to reflect single-income planning; and
- Establish an emergency fund so unexpected events do not destabilize your finances.
Contact Our Charleston Divorce Mediator Today
At Charleston Divorce Mediators, LLC, we are committed to helping clients find amicable solutions. If you have any questions about the financial issues of a divorce, we are here as a resource that you can trust. Schedule your confidential appointment. We provide divorce mediation services in Charleston and throughout the surrounding region in South Carolina.
About Catherine Marra
Catherine Marra is a Mediator with over 30 years of experience in Family Law, including 20 years in private practice and 10 years as a Family Court Magistrate. She uses her knowledge and experience to guide couples in negotiating divorce settlements so they can save money, complete the divorce process quicker, and get better outcomes than they would at trial.