Assessing Your Budget and Financial Empowerment After Divorce
While it is understood that the end of a marriage is an emotional transition, it is essential for individuals navigating divorce to prepare for financial shifts as well. It is natural to focus on other priorities, such as a desired child custody agreement or retaining certain properties, such as the marital home, but knowing what your finances will look like post-divorce can inform your decisions.
There are experienced professionals who can help. Talk to a Bucks County family attorney about the importance of assessing your budget. Then, you can make strategic financial decisions and your attorney can negotiate terms that secure your life in the coming months and years.
Household Expenses, Tax Concerns, and Insurance
Having a detailed household budget, both for your situation as it stands today and your expectations once the divorce is finalized, can be informative. Begin by documenting your income, including any support you are receiving from your spouse, as well as your ongoing expenses. Break down your budget into categories such as housing, utilities, groceries, transportation, and miscellaneous expenses.
Once you have the facts in front of you, you can analyze your spending habits and identify areas where adjustments can be made. For example, you may see that it will be difficult for you to continue mortgage payments on the marital home if your soon-to-be-ex spouse isn’t willing to provide support or take on some of the other marital financial obligations.
At this point, it is common for people to feel empowered by their financial knowledge. Then, they can begin working toward what they want. For instance, you can now set clear financial goals for the short and long term. Prioritizing essentials like housing, healthcare, and education while establishing clear financial objectives will guide your decision-making process.
As you move through the financial assessment process, you can also analyze how your taxes will change post-divorce. Filing as head of household or claiming certain tax credits may be more beneficial. Adjusting your tax withholdings to align with your new financial situation will prevent over-withholding, ensuring you have more income available throughout the year.
Determining your healthcare insurance needs and exploring available options is also advised, such as taking steps toward securing employer-sponsored coverage, enrolling in a private plan, or exploring government-sponsored programs.
Lawyers Can Help You Take Control of Your Financial Future
Taking control of your finances while separating is about more than addressing your immediate needs. A Bucks County family attorney can help you build a foundation for a secure future. Seeking professional guidance from a divorce attorney, and also a financial advisor in some situations, will provide you invaluable support so you can build the stability you deserve.
Are you anxious about how your finances will look should you divorce? With careful planning and strategic decision-making, you can navigate the financial challenges of divorce and embark on a new chapter with confidence and resilience. Talk to the lawyers at Kevin L. Hand, P.C. to learn more. Call 215-968-6602 to schedule your consultation today.
