Controlling Your Finances After Divorce

 Posted on June 01, 2017 in Divorce and Finances

Getting a divorce can lift the emotional burden of being in a stressful marriage. However, single life has its own stresses, not the least of which is the financial adjustment. Your household income may be decreased, or you may be responsible for monthly support payments to your former spouse. Expenses you once shared with your spouse are now your individual responsibility. It can be a harsh adjustment if your former spouse was in charge of keeping track of your finances. You can take steps during and after your divorce to help yourself deal with your new financial independence.

Divorce Settlement

When negotiating the terms of your divorce, support payments and the division of property can give you some financial security. Child and spousal support, in particular, can benefit you for years:

• If your income is less than your spouse’s, you can receive monthly spousal support payments. The number of years you receive them will depend on how long you were married.
• Your income also determines whether you will receive child support payments. A new Illinois child support law will base the payments on the comparative income of each parent, not solely on which parent the children live with.
• If you are the party with greater income, you must accurately value your spouse’s income and assets to protect yourself from making disproportionate support payments.
• Receiving a fair share of your marital property can save you future expenses, if you will need to replace property you lost. You may be able to protect some of your assets if you can prove they are not marital property.

Financial Responsibility

You may have become accustomed to a standard of living during your marriage. Divorce does not mean you must give up all of your luxuries, but you will need to adapt to your new income. If your spouse was responsible for handling your finances, you may not know all of the expenses of your lifestyle. A financial planner can lay out the adjustments needed to become a financially independent adult, such as:

• Updating the names associated with your financial accounts and benefits plans;
• Assessing your monthly budget to determine whether unnecessary expenses need to be cut;
• Checking your credit score and, if needed, starting a plan to strengthen your credit; and
• Establishing individual insurance and retirement plans.

Divorce Finances

There are many short- and long-term costs involved with getting a divorce. A Kane County divorce attorney at Goostree Law Group can help prepare you for financial stability in your post-divorce life. To schedule a free consultation, call 630-584-4800.

Source:

http://www.divorcemag.com/blog/12-tips-to-take-hold-of-your-finances-after-divorce