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Managing finances after a divorce

On Behalf of | Aug 22, 2019 | Divorce

Divorce often creates complex financial circumstances for both spouses, especially those who had joint bank accounts and numerous shared assets during the marriage. According to Forbes, financial issues could be even more serious for women who relied on their spouse’s income, health insurance and/or financial management skills during the marriage. One of the most important things for Florida residents to do during the divorce process is prepare for the change in financial circumstances that will occur once they file the final paperwork.

The first step toward creating a post-divorce budget is developing a comprehensive list of financial assets and liabilities. Depending on the terms of the divorce, each spouse may end up with a portion of both the assets and the debts. Each person should create a list of income and expenses, including alimony, child support, paychecks, mortgage payments and taxes.

Once an individual has an accurate view of the overall financial picture, he or she may determine how much to budget for living expenses, investments and savings. If a person will have to find a new job after the divorce, this sort of financial analysis may help him or her understand what sort of salary to pursue.

While many people fear that divorce includes negative financial consequences, this may not always be the case. U.S. News and World Report indicates that there may be some financial benefits following a divorce. For example, a divorce is a circumstance where an individual may be able to access retirement funds early without a penalty. Depending on age requirements and the length of the marriage, some divorcees may be eligible to file for Social Security spousal benefits when they retire.

A divorce may allow each spouse to reevaluate his or her financial priorities and make spending decisions without marital strife. With a realistic budget, a divorced person may be able to recover from financial missteps and build wealth successfully.