Creating a Financial Plan After Divorce

A divorce changes your life in many ways. You go from being a married man or woman to a single one. You now live alone. If children are involved, you will now share custody with your ex-spouse.

The biggest change? Your money situation. When you were married, you likely split expenses with your spouse. Or maybe you didn’t even work, if you were a stay-at-home parent. No matter the situation, it’s going to be different once you’re on your own.

A divorce is a life-changing situation, and this means that you’ll need to change your financial plan to match your new way of life. This may entail getting all your important documents up to date, reviewing credit and debt and maybe even finding new ways to make money. Here are some things to consider as you create a new financial plan post-divorce.

Update Financial Accounts and Documents

The first thing you should do following a divorce is cut all financial ties you have with your ex-spouse. This means closing joint bank accounts and credit cards and opening new ones in your name only. If you have retirement accounts or life insurance policies, make sure the beneficiaries listed on those are updated as well. Make sure your ex-spouse is aware that you’re making the changes so they don’t run into issues when they try to access the accounts.

Make More Money

If you already work full-time, then you may already be comfortable financially. However, many people who divorce are not so lucky. Many are stay-at-home parents who haven’t worked in many years. Some may work part-time only and don’t make enough money to live on their own and pay for all their expenses. If you don’t have any savings to tide you over, then making more money should be high on your list of priorities, since you can no longer rely on your spouse’s income. Train for a new job and consider a career change, if necessary. In the meantime, cut back on expenses and consider selling assets.

Create a Budget

You will have to live with the fact that you may not be able to maintain the standard of living you had while you were married. It’s a lot harder to maintain a household on one income, so you’ll need to find ways to cut back. While you can’t change your rent or mortgage payment, you can cut back on groceries and entertainment. Keep in mind that you might have new expenses to consider as well. For example, you may now have to pay alimony or child support. If you have children, you may need to pay for daycare as you return to work.

Contact a Maryland Divorce Lawyer Today

A divorce splits a household into two. As such, you’ll need to be able to transition to life on your own, and this means having a plan in place.

The Columbia divorce lawyers at the Law Offices of Todd K. Mohink, P.A. can help you get your finances in order following a divorce. We will fight for your legal and financial rights. We have two offices to serve you. To schedule a free consultation, fill out the online form or call (410) 774-5987.

Resource:

nasdaq.com/articles/how-to-redo-your-financial-plan-after-a-divorce-2020-04-25

https://www.marylandlawhelp.com/when-business-owners-divorce/