Budgeting for Life After Divorce

As if the stress of a separation and divorce isn’t overwhelming enough, add to it the uncertainty of your future financial position, and it’s more than enough to cause any individual to shut down. You are splitting one household into two and have to open separate accounts and acquire paperwork for retirement accounts and taxes. And if you were not the main breadwinner in the family, you may be overwhelmed and stressed wondering, even with child support and spousal support, how you might adjust in a single-income environment.

The good news is you are in control of your own financial future and you should consider it a reset button of sorts. Take just a few small steps toward budgeting for your future and you will realize newfound courage and strength in the process.

Focus on these two key efforts:
 

  1. Consider your current budget and take inventory of what it may look like after your divorce is finalized. Think about which expenses are unavoidable, and where you can cut back. If you were financially dependent on your spouse during your marriage, you may need to consider downsizing your living space or even re-entering the work force.
     
  2. Meet with a financial planner and create a plan to manage your finances moving forward. Unfortunately, often people wait to seek financial advice until after the divorce. It’s certainly easy in the stress not to want to add another person into an already messy and private situation. However, you should seek out your own financial advisor — separate from your divorcing spouse. If you had a financial advisor during your marriage and know your significant other is still using that advisor, it’s best to hire a separate professional so loyalties are clear.

It is important to understand it will likely cost more to live separate from your spouse after divorce. However, by taking control of your finances, understanding your current financial situation, and making a plan for the future, you will be empowered to move toward the next phase of your life.

Most importantly, talk through your situation with family law attorneys who are adept at advising on complex financial situations. The attorneys at Pollock Begg Komar Glasser & Vertz LLC work as a team with other professionals, such as CPAs and financial advisors, and are particularly skilled with high net worth divorce situations. Contact us to discuss your divorce and prepare adequately for your financial future.

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