Barbara J. Howard Co., L.P.A. Barbara J. Howard Co., L.P.A.

The financial adjustments you may need after divorce

Getting divorced comes with numerous costs, including legal fees. And while you may have a plan to pay for the divorce itself, you still need to make a financial plan for life after divorce. We’ll share some tips to that effect in today’s post.

Assess your finances and make a budget

Married family life is expensive. But we often forget that living as a single person can be expensive, too. Paying rent/mortgage, buying groceries and paying utility bills on a single income can be a struggle. By one estimate, someone going through a divorce would need to increase his or her income by about 30 percent just to maintain the same standard of living once the divorce is final.

If you can’t land a big raise or find a better-paying job, post-divorce life may require some stricter budgeting and financial sacrifices. Therefore, creating a budget should be one of your main priorities. There are numerous apps and software programs available to help, or you can seek out a reasonably priced financial professional to get you organized.

Reassess retirement planning

If you hired a knowledgeable attorney, you should be able to secure about half of your combined retirement assets, including savings accounts, IRAs, 401(k)s and pension funds. But as we mentioned above, it costs more per person to live singly than it does to share expenses as a couple. If you and your spouse are each cutting your retirement savings in half and anticipating higher living expenses in retirement, you’ll need to reassess your approach to saving. This could mean diverting a greater percentage of your paycheck into your retirement accounts or picking up extra work to make up some of the lost savings.

Plan for insurance coverage

If you receive insurance coverage through your employer, you will likely have no insurance concerns post-divorce. But if you have been on your spouse’s insurance plan, you will probably need to find other coverage. This can be pretty expensive, so start shopping around while the divorce is still pending.

These are just some of the many aspects of financial life you will need to face once the divorce is finalized. Thankfully, an experienced family law attorney can serve as a great resource in making these important changes.

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Barbara J. Howard Co., L.P.A.

Barbara J. Howard Co., L.P.A.
960 Mercantile Center
120 East Fourth Street
Cincinnati, Ohio 45202

Phone: 513-421-7300
Fax: 513-562-3532
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