What To Expect
While divorce may bring a great deal of relief to your life, it can also add a new host of worries. Perhaps one of the largest worries you can have after a divorce is a complete change to your finances. What can you expect your financial situation to look like when your divorce is finalized?
Perhaps you were enjoying a combined income with your spouse. Now that you’re divorced, that additional income is gone, meaning you only have yours to rely on. However, a judge may have ordered your ex-spouse to pay child support or alimony, depending on the situation. In such cases, there is a silver lining to a seemingly bad turn.
The Need to Budget
Now that your income is reduced, you will likely be spending less on personal expenditures. However, bills and necessities still exist. A smart move many newly divorced people make is to begin planning a budget.
Planning a budget helps you keep track of your finances by logging income and expenses. By plugging in planned bills and paychecks and logging any personal purchases, you can better get a grip on your new financial situation and even save money in the long run!
The Benefits of Custody
If you are given custody after the divorce, then you have a bit more financial flexibility. First, as the custodial parent, you have the ability to claim your child as a dependent on your income taxes, thereby lowering your tax liability and saving you money.
In addition, when your child goes to college and fills out the Free Application for Federal Student Aid (FAFSA), only the custodial parent’s income information is used to determine government student loan amounts. This could end up saving money, as well.
A divorce ultimately means you reset your priorities. If you were used to spending money on whatever you wanted to during your marriage, that may not be possible after your divorce. Learning how to better balance your budget while saving money gives you a greater sense of financial security.
Attorneys Can Help
If you are going through a divorce and are worried about what your finances may look like at the end, speaking with an attorney can give you peace of mind. TRABOLSI | LEVY | GABBARD LLP has worked with numerous clients to help them receive what is fair after a divorce and can help you understand your options.
Call us at (310) 455-8364 or fill out our contact form today to set up a consultation.