A divorce always takes its toll on both parties both emotionally and financially. Your standard of living decreases because you no longer have two salaries on which to depend in your household. Sadly, most people don’t prepare themselves for that particular consequence of divorce, but there are certain tips that can help you thrive financially after your marriage has ended.
Learn How to Budget
Knowing how to budget is the key to having financial success after a divorce. You probably already lived on a budget during your marriage, so it’s just as important to continue doing so after a divorce. After all, your finances are now less because you are relying only on your salary and other assets. It may be a challenge if you have never budget before, but it’s simpler than you might think. A good way to start is to make a list of all your income post-divorce, including alimony and child support. Then, list your fixed expenses like rent, car payments, insurance, utilities and others. Calculate all of those amounts and then you can determine how much money you have left over for the month for other things, such as paying a debt, paying for your children’s education, savings, and entertainment.
Pay Off Debt
One of the best ways to unburden yourself financially is to pay off your debt. It will also help you to thrive financially after you get a divorce. This should be part of your budgeting and you should think about any and all debt that you currently have and whether you would be able to reduce some of your expenses so that you can pay it off. It’s all about priorities, so, for example, if you have credit card balance owed, consider what you might be able to cut from your budget so that you can pay that debt.It’s important to know what you have in terms of debt. Make a list of all outstanding debts, regardless of type. Always factor in any interest rates, loan terms, and other details so that you can determine the best way to pay back your debts. Generally, you should start with the debt that has the highest interest rate and works your way down.
Reevaluate Your Retirement Savings
It is extremely important to reevaluate your retirement savings after a divorce. When you were married, you probably pooled your finances with your spouse’s to go toward retirement, but now that you are newly single, you will have to think about how to save for yourself. You should include saving for your retirement in your monthly budget. Regardless of how much you put in, there should be enough that your retirement account can earn interest and grow over time.If you live in Utah and are splitting up with your spouse, you need a skilled Salt Lake City divorce attorney representing you. Contact the office of Wall and Wall, Attorneys at Law to speak to a Salt Lake City divorce attorney at your earliest convenience.
About the Author:
Cory Wall has over 28 years experience as a divorce and family law attorney and is a member in good standing of the State Bars of both Utah and California. Cory aggressively representing his clients in matters including the complex and difficult issues surrounding paternity, child custody, alimony, grandparent rights, property, and debt division.
Wall & Wall Attorneys At Law PC
2168 Fort Union Blvd.
Salt Lake City, UT 84121
801-441-2388
