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How will divorce affect your finances?

On Behalf of | Aug 17, 2020 | Family Law

Divorce will affect you in many ways, including your financial circumstances. If you don’t get serious about protecting this part of your life, it will come back to haunt you after your divorce is in the past.

From the start, you must have a clear idea of how divorce will affect your finances. This allows you to adjust accordingly by making decisions to stabilize your situation as you figure things out.

Here are a few details to think about:

  • Monthly income: Now that you only have access to one income, you must think about how it will impact your ability to pay your bills. Add up all sources of income, including child support and alimony, if applicable, for a clear idea of how much you’ll earn each month.
  • Monthly expenses: Just the same as your income, your monthly expenses are likely to change post-divorce. For example, you may no longer have a mortgage to pay if your ex-spouse kept the family home. Creating a post-divorce budget will help you understand what expenses you’re up against.
  • Child support and alimony: For many, one or both of these are a source of income. However, you may find yourself paying out money every month, which affects your budget. If child support and alimony come into play in your divorce, have a clear idea of the impact on your future.
  • Property and debt division: Once you decide to divorce, create a property and debt division checklist that provides a clear overview of your financial circumstances. Do you want to stay in the family home? What will you do about joint credit card debt? How about retirement accounts?

These are just a few of the many ways that divorce can affect your finances. Once you have a better understanding of what to expect, you can formulate a plan to help you maintain stability during this challenging time.

There’s a lot to think about in divorce, but your finances should never be put on the backburner. A clear vision of your legal rights and what you want to accomplish will help you get through this difficult time and prepare for a better future.

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