If you are headed for a divorce, you need to be making preparations for your post-divorce financial life. Whether you have a job or not, whether you have kids or not, whether you live in an apartment or a mansion, you need to be taking financial steps towards your post-divorce life as early as possible.
If you’re not sure where to start with your finances, call Empowered Family Law today at (251) 277-2885 to discuss a personalized game plan! Until then, here’s what you need to know:
1. Overall Preparations
First, you need to take stock of your individual income and expenses. If you have children, the parent with physical custody will usually get a tax deduction and child support. It is a good idea for both spouses to work with different Financial Planners or CPAs to create an effective post-divorce budget for yourself with your projected income.
2. School
Expenses for school and extracurricular activities are not normally covered in a support order, so you should make a plan for those. Private school tuition is also not typically ordered unless you agree to it. If you have children aged fifteen or older, you should be planning for college expenses! College expenses cannot be court-ordered in Alabama, unless you have a written agreement to include them in your support order.
3. Debts
If you share any major debt with your spouse, such as mortgages, loans, and vehicle payments, it is the Judge’s job to untangle them and reassign them appropriately. If you are both on your house’s mortgage, you should assume upfront that it will be sold. If you want to keep it, you should start looking right now to see if you qualify to refinance!
4. Credit
Your credit score can be hit hard immediately after a divorce, so you want to make all the preparations ahead of time that you can. You need to run your own credit report (which can be done for free), because often people have some of their spouse’s debts on their credit score that they didn’t even realize.
Get Started Today
We know that all of this can be overwhelming at first – especially if your spouse primarily managed your family finances. It’s going to be okay! At Empowered Family Law, PC, we can help connect you with resources that will make the financial side of divorce more manageable. If you are struggling with a divorce, contact Empowered Family Law, PC today! We empower families to navigate difficult changes and create new beginnings.
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