Are you feeling overwhelmed with finances since making the decision to divorce? Divorce pulls on the purse strings in a number of different ways. Not only will you be dividing a household income, but for many couples, the break also signifies a new financial start. You may have planned your financial future around the marital income, but now you must plan to forge ahead alone.
While the financial stress of divorce can be overwhelming, you do you have options and support. Our Birmingham divorce attorneyscan help protect your rights and your financial interests throughout the divorce process so that you can focus on getting back on your feet. Here are some tips as you plan ahead now and after your divorce is finalized.
Take a new approach to your living expenses. You need to take an honest assessment of your living costs and create a new budget. Will you need to sell the home? Pay rent? Buy a new car? What additional costs will you have as a single person? Create a budget that works for you and be as accurate as possible when determining your fixed costs.
Understand how divorce will affect your taxes. Now that you will be filing as a single person, you should be aware of how your divorce will impact your taxes. During the settlement process, it is also important to discuss with your attorney the specific implications of your settlement agreement. This is even more important if you are older and have less time to build a retirement account.
Be wary of delayed payments. While a settlement agreement that gives you more money long-term may seem appealing, consider that delayed payments will also have negative consequences. Instead of alimony, you could consider a buy-out, for example. Work with an advocate who can help you take consideration of present and future value, including inflation, when working out your settlement agreement.
Diversify your portfolio. Now that you are a single person, you need to be certain that your funds are in a safe place. You can consult with a financial planner or a trusted friend, but be sure that you have a clear understanding of where your funds are and how to access them.
Be proactive. This is especially important if you were a homemaker or did not contribute substantially to the household income. Generating income is one sure way to get yourself secured and back on your feet. Evaluate your current assets and passive income that may also give you additional security.
Consider your health. If you are divorcing with health issues, consider your new health care arrangements and the income you will need to cover expenses. If you have a permanent condition or an impairment that could be costly you may need additional financial support or assistance. You should also work with a trusted advocate when seeking out new health care insurance if you will be dropped from a spouse's employer plan.
Revise your estate planning. You will likely have to review your estate plan, will, and beneficiaries named in any retirement plan. An experienced attorney can help to negotiate to receive any benefits you are entitled to. You may also want a will or policy to account for spousal debts, alimony and other buyout agreements.
If you are seeking a divorce in Birmingham, contact Family Law Attorney Steven Eversole at (866) 831-5292.