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Smarter financial planning after divorce

On Behalf of | Jan 17, 2021 | Divorce

Divorce is a difficult time for most spouses, and financial planning is essential. Financial planning ensures that you provide your children with a stable lifestyle. In addition, you need to be aware of your options, assets and the impact of divorce on your finances. Do not let your emotions prevent you from making rational decisions regarding your finances after ending your marriage. Here are some tips to consider.

Review your financial position

Before you sign the divorce decree, you need to check on your financial situation. Review your sources of income, tax and assets. Divorce is complex since you might have to maintain two households with your income. An accountant may help you review your bank statements and decide what you will or won’t afford after the split.

Alimony budget

According to family law, alimony is the settlement you give to your ex-spouse after a divorce. The amount of alimony is influenced by the duration of the marriage, the worth of your marital assets and whether the other partner was working. Alimony will affect your budget and taxes since alimony is taxable. If you are to pay alimony, you need to consider your financial situation. If you are receiving alimony, remember that the payments are not forever. Once they end, you’ll need to work and earn your own money.

Plan your career

Although you might get discouraged looking for work, planning your career is an important part of handling your finances after divorce. Getting a new job could also help improve your social life. If you’ve been unemployed for long, you’ll likely require training before jumping back into the workforce.

Are you going through a divorce? Consult a family law attorney for more guidance on financial matters.