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Making financial plans to succeed after divorce

On Behalf of | Nov 5, 2018 | Family Law |

Spouses in California thinking about divorce may find themselves preoccupied with the financial consequences of their decision to end their marriage. Even after the emotional and practical issues associated with a split have been handled, the money aspects of divorce can linger for some time to come. However, by keeping some key guidelines in mind, people can help to protect their assets and continue to prepare to achieve their financial goals even as they proceed with a divorce.

Many people feel tempted to spend in the immediate aftermath of the end of a marriage. People need a new place to live and they may look for clothes, goods or even cars that fit their new, single life. However, the immediate post-divorce period can often be a fiscal adjustment, especially for people who were used to being part of a dual-income household. In the period right after divorce, it can be important to focus on making frugal and responsible choices and opt for small indulgences rather than major purchases. As time goes on, people will get a better feel for how items will fit into their budgets.

There are other issues to consider immediately after a divorce. Some may want to dip in to investment accounts or even cash them out in order to fund their new start. However, this option can backfire. There could be significant tax consequences of selling off investments, and it can set people back significantly in their financial plans. A better option can be to look for ways to save.

When people decide to divorce, they may wonder about how it will affect their financial lives in the period to come. Divorcing spouses can consult with a family law attorney who can provide guidance and representation in order to reach a fair settlement on key matters like spousal support and property division.