Financial Planning After Divorce
During a divorce, you no doubt have numerous issues on your mind. Child custody, child support, maintenance, asset division, to name a few. One thing many people neglect, though, is finances. How will you support yourself after a divorce?
Child support and maintenance won’t pay all your expenses. If you currently aren’t working, now’s the time to get a job. You need to pay bills, pay off debts and save up for college and other huge expenses.
It’s not just about paying for a divorce; you’ll also need to fund your new life. Your new life will consist of just you (and kids, if you have them). Your spouse will no longer be contributing to your household budget, so it’s up to you to get on a solid financial foot. Not sure where to start? Here are some tips to help.
Change Your Mindset
Once you are single, you are not guaranteed the life you had while you were married. A household is getting split into two, and it is cheaper for two to live under one roof. Therefore, you need to change the way you look at money. Don’t let your emotions get in the way. At this time, money will be the basis of everything you do.
Create a Budget
You need to have a clear picture of how much money you are making versus how much you are spending. If you’re spending too much, find ways to cut back. Now is not the time to be splurging. Make a budget and stick to it. Start saving as much as possible. You need to think about the future, such as vacations, new cars and possibly a new house.
Think About Taxes
Being married has benefits when it comes to taxes. Once you and your spouse part ways, you may have a larger tax liability come April 15. This is especially true if you took stock as part of the divorce settlement or sold the home and made a profit. Be aware of this and plan accordingly. Make sure you file the right way and claimmaintenance as a tax deduction if you pay it.
Learn More About Financial Planning After Divorce
A divorce forces you to start over financially. This can be scary, especially if the other spouse was the breadwinner. Preparation is key to survival.
A financial plan can bring out peace of mind and make the divorce process less stressful. The Ramage Law Group can help you understand your financial obligations after a divorce so you can move on without fear. Contact The Ramage Law Group at (972) 562-9890 to schedule a consultation.