When you obtain an
Arizona divorce, you sever ties in your relationship and start over – simultaneously.
One of the most important things you can do to prepare for this tumultuous
time is to have a financial plan to help secure your future and provide
peace of mind. But doing so is not without its challenges.
Top 5 Tips for Post-Divorce Financial Planning
- Start by reviewing your finances and expenses. Don’t wait until you’re
divorced to address the financial situation. Go into your divorce knowing
what you need in order to maintain your needs financially once all is
said and done.
- Budget for alimony (aka spousal maintenance). When determining whether
alimony is part of the settlement, the court will consider the length
of the marriage, whether or not one or both partners worked or didn’t
work and for how long, assets received as part of the settlement, etc.
The recipient of alimony will also need to consider and plan for potential
- Plan a career. Consider immediately what you can do to make re-entering
the workforce post-divorce less difficult. In addition to helping financially,
a job will help with self-confidence, happiness and a social life. On
the job is a great place to meet new people. Some feel additional education
is a good first step while others simply need to tap back into an old
- If you own a home, consider downsizing. Many try not to disrupt the lives
of their children after divorce by trying to stay in the family home.
This can be a major difficulty in the divorce as the “family home”
is often a big expense in the budget and the house is not a liquid asset.
If your budget is tight, moving to a less expensive home or even renting
a home could be a better option for you and your family.
- Don’t overlook the family’s needs for health insurance. If
you used to be on your spouse’s policy, this could be a major, new
expense. Start looking for your own policy before you’re divorced.
This is another benefit to reentering the workforce – some positions
will come with good benefits.
Consider the fact that your actions during your marriage were all based
on a set of future goals (either loose and fluid or set down on paper).
Now that you are getting divorced this has changed. For some, the goals
themselves will change. For others, the goals will stay the same, but
they’re no longer in connection with someone else. Successfully
managing your divorce will rest largely on your ability to successfully
plan your finances during your divorce and after you receive your divorce decree.
For additional information on Arizona divorce or successfully coping post-divorce,
please get in touch with the experienced divorce lawyers at
Arizona Family Law Attorneys.