Divorce is known to be a financially disastrous task, but rebuilding your wealth afterwards is very possible. Since you may have been dependent on two incomes to help pay bills and other things for your entire household, learning how to manage your income with one less individual to support can be a little rough. However, if you learn to establish a budget and not go over it, reassess your current financial situation, reevaluate and re-prioritize your financial goals and projected income, it can be a lot easier to understand and maintain.
One step to financial planning is to review your financials and expenses monthly. You should begin by looking at your income sources, your most common purchases, which assets now only belong to you, and your new tax situation. Although every divorce is different, it is always harder and more expensive to maintain two households instead of one. If you are paying child support and alimony as well while you are supporting your own household, your expenses will obviously go up. If your ex partner was working when you divorced and you split the assets down the middle, then you only will have your household and possibly child support to worry about. You should also review your past year’s credit card and bank statements. You can make a chart and organize your expense category and list separate expenses for you, your former partner, and your children if you have any. Once you have made this list, you will definitely have a better and broader understanding of what you can afford, so you can allocate the money to new things that you may need. If you were awarded the house, consider downsizing to an apartment to save money. You will have one less person living with you, so there is no need for extra space unless you have children that will live with you.
Insurance coverage for both you and your ex spouse is typically negotiated as part of the divorce settlement. Because spouses usually share the same insurance plan, try to make it a priority to find good health insurance coverage after your divorce. Also, now that you are single you will want to make sure that your life insurance coverage and disability coincides with your current state of health. You will possibly need to change your beneficiary designations on any retirement accounts, wills, estate plans, and bank accounts that you have in your name. Some divorce settlements may require you to keep your ex as a beneficiary on a policy, in which you cannot change the beneficiary designation. Speak with an experienced attorney such as the family lawyer Tampa FL locals turn to.
Thanks to authors at The McKinney Law Group for their insight into Family Law.
