How to Financially Prepare for the Conclusion of Your Divorce
Obtaining a divorce can be complicated, so it is not uncommon, while in the midst of these types of proceedings, for the parties involved to neglect the financial aspects of post-divorce life. Unfortunately, this kind of oversight can result in significant hardship for recently divorced couples, making it especially important for those who are considering filing for divorce in Florida, to discuss the steps that will financially prepare them for their new lifestyle with an experienced Fort Lauderdale divorce lawyer.
Assessing Assets and Debts
One of the most important parts of preparing for one’s new financial status after divorce is to assess which property and liabilities both parties will receive upon finalization of the proceedings. Florida courts divide both assets and debts between divorcing parties based on an equitable division standard. This includes bank account funds, investments, retirement accounts, and real estate, as well as outstanding loans and mortgages. When all is said and done, both parties will have a list of the assets to which they are entitled, as well as their value, and a record of the debts for which they will be responsible.
Besides accounting for property settlement awards and debt payments, divorcing couples should also break down how much they can expect to earn each month, separate from their former spouses. Potential income could include monthly paychecks, as well as child support payments or alimony, and potential investment income. This number, combined with the assets granted in the divorce will help establish what kinds of funds both parties will be working with going forward.
Another important part of this process will involve allocating funds based on necessities and not desires. This will enable newly divorced individuals to ensure that they have sufficient funds to pay for things like utilities, rent, and debt payments. These numbers, when combined with a person’s monthly income (separate from his or her spouse), can give someone a good idea of what he or she can afford to pay for once the divorce is finalized.
When making this assessment, it’s also a good idea to eliminate expenditures that aren’t necessary. For instance, health insurance costs, housing payments, and utilities are all necessary expenses that must be accounted for. Vacations, expensive hobbies, and entertainment, on the other hand, aren’t actually necessary and so can be eliminated from the budget. Classifying expenditures in this way will, ultimately, allow couples to set realistic budgets based on their needs and financial means. These budgets can then provide a safe and solid foundation for recently divorced individuals, who can start looking ahead to their financial futures.
Set Up a Free Consultation Today
Failing to acknowledge how your financial status will change upon divorce can create significant obstacles for you down the road. To ensure that you are informed about your income and expenses, please reach out to dedicated divorce lawyer Sandra Bonfiglio, P.A. at 954-945-7591 or complete an online contact form to get in touch with a member of our legal team today.