Managing money through a divorce

Divorce is traumatic enough. Throw money issues into the mix and problems compound.

Divorce instigates a huge financial upheava,but unlike other significant life events, it is not one that people include in their financial plan.

Jo Gillies has had a complete change in lifestyle since she and her husband of two decades began divorce proceedings two years ago.

They have taken their daughter out of private school, have stopped taking holidays and have curbed household spending. Gillies says she now buys her clothes in factory outlets rather than in designer stores.

''It was 20 years of sharing living expenses with someone,'' Gillies says. ''It requires an attitude change. I now shop at [discount grocery store]. I would have never stepped in that joint before but now I probably save about $100 a month shopping.''

Gillies and her former partner were wary about the money that might be wasted in an adversarial court process and decided to negotiate their own terms of property division, which they did with the help of a friend who works as a mediator.

via Managing money through a divorce | Stuff.co.nz.