If your marriage is ending, it is ideal to be financially prepared. The dissolution of any legal union can create a decrease in finances for either of the spouses who are involved. Knowing certain tips to help you get ready for the end of a marriage can help you when faced with this difficult situation.
Tip #1: Create a budget
One of the first things you will want to do when getting ready to live alone is to create a budget for yourself.
Consider the items listed below and calculate the amount of money you can spend on each one:
- Housing – Do you plan on buying a home or renting a place to live? Regardless of which method is best for you, you should determine the amount for this.
- Insurance – You will be responsible for paying your health, car and any other insurance needs that you have when living alone.
- Transportation – Do currently own a car or can you live off public transportation? Plan ahead and determine which will best suit your individual needs.
- Food – Consider making a monthly budget for food that you can stick with for the long term. This will help you have more control of your money and can avoid unnecessary spending.
By taking the time to plan ahead for expenses you will have to pay, this will better prepare you for what to expect.
Tip #2: Prepare for custody
If you have a child, it's important to determine who will get sole custody of the child. You may need to pay child support if you do or if the other spouse does, you should be prepared for how much money may be required.
Take the time to evaluate the individual needs of the child that may include health insurance costs, clothing and food for each month, as well as a number of other expenses.
Tip #3: Consider income taxes
You will still need to pay your share of the income taxes to the government. Consider if you and your spouse can still file jointly for the previous year. If so, this may save you some money because filing jointly typically allows for a larger deduction.
Finally, ending a marriage is never easy and neither are the days that accompany a divorce. Be sure to retain the services of a divorce attorney to help you determine what you need to do during this life event. To learn more, contact the Law Offices of Gordon Liebmann with your questions.