How To Manage Your Finances After Getting A Divorce
When it comes to divorce, there are all too many uncertainties, but one thing you can count on is that your finances will be affected. With all the emotional upheaval you are experiencing and the question marks about your financial future, moving forward can be difficult. An experienced California divorce attorney can help you better understand how divorce is likely to affect your finances, help you protect your financial rights, and help you move into your post-divorce future with increased confidence.
The Division Of Marital Property
In California, those assets that you and your spouse acquire while you are married – either together or separately – are considered community property that belongs to both of you. Upon divorce, these assets will need to be divided between you equally. When one household’s assets need to be spread across two households, both households can expect to experience financial effects that amount to challenging transitions.
One of the most important moves you can make to help you manage your finances after divorce is to take a proactive stance during the divorce process. Keep all the following in mind:
- Talk to your dedicated divorce attorney about how your divorce terms will directly affect your finances and plan accordingly.
- Take care of the financial details as they arise. For example, if you and your spouse are closing joint credit accounts or taking one of your names off an account, such as your mortgage, tackling it head-on decreases the risk that you’ll run into problems later.
Taking The Necessary Steps
As you head into your post-divorce future, there are several important steps you can take to help ensure that you’re on top of your finances and making wise choices moving forward. Consider the following:
- Make sure that you have a big-picture understanding of your finances and your current net worth, which should guide your post-divorce financial decisions.
- Create a new monthly budget and make adjustments accordingly. After divorce, it’s often necessary to reduce your spending in certain areas, and tackling this early on can pave the way for a smooth financial transition.
- Concentrate on building an emergency fund, which may be depleted or missing entirely post-divorce.
- Set financial goals that make sense for you and your kids in relation to your new financial reality.
- Make a plan to consistently chip away at your debt and build your credit back up – both of which can be seriously affected by divorce.
- Explore ways to increase your income, which could include investigating new career or education opportunities, asking for a well-deserved raise, going after a promotion, or anything else that makes sense for you.
- Live in the present with an eye toward the future. A divorce can leave you struggling to put one foot in front of the other financially, but it’s important not to lose sight of your financial future. For example, increasing the amount you contribute to your retirement accounts even slightly can make a significant difference over time.
An Experienced California Divorce Attorney Can Help
The trusted California divorce attorneys at Miranda, Magden & Miranda, LLP, have the legal skill, impressive experience, and insight you’re looking for. Learn more by contacting us today.