Managing Your Finances During a Divorce
Finance & Divorce
The financial aspects of divorce can be a complex area to deal with as you tackle the emotional challenges of the situation. Even in relatively simple divorce proceedings, it can take some time and careful planning to sort out your finances, so you’ll want to know what you might expect as the divorce takes place.
Below you will find a few helpful tips that can allow you to avoid some of the financial pitfalls of divorce so that you are able to land on your feet.
Map Out the Costs of Your Divorce
The costs of divorce can add up quickly, since there are many associated expenses beyond the cost of an attorney and court fees. Real estate costs, counseling, and the cost of moving to a new home can all contribute to the total cost of your divorce, a figure that you will want to map out well ahead of time.
Waiting until the divorce has been finalized to determine how much you have spent through the process can easily get you in debt and have you struggling to stay above water.
Create a New Budget
Single life will have a much different budget than married life, especially if you are paying child support or alimony. At first, you may have more everyday expenses as you get your life in order, and you may need to invest in creating a second home for your child if you are sharing custody of your kids.
You’ll also want to think about the tax implications of post-divorce financial agreements. For example, alimony is a tax deductible expense for the spouse paying this support, and it is taxable income for the recipient.
Avoid Impulsive Financial Decisions
In the stress of a divorce, there may be high temptation to splurge on a new car or big screen TV, but these purchases can be a big mistake during the divorce process.
Not only can a large purchase set you back financially, but it might reflect poorly on you as you work through a custody battle or duke it out over spousal support.
If you are considering filing for divorce or your spouse has recently served you with divorce papers, Thrush Law Group can offer experienced representation to help you protect your interests throughout the process.
Schedule a free family law consultation in our Tucson office.