Financial Planning for Your Post-Divorce Life
Fort Wayne attorneys help with decisions on self-sufficiency
One of the most important tasks of a divorce attorney is to secure the best financial position for the client by reaching a favorable resolution on spousal support and the division of marital property. At Shilts & Setlak, LLC in Fort Wayne, we want our clients to begin the next phase of their life on the most advantageous footing possible. However, many of our clients can’t clearly foresee their post-divorce financial situation, because they don’t have a firm grasp of their current circumstances. Some have unrealistic expectations. Achieving post-divorce security requires conducting a thorough assessment of your resources and making realistic budgetary decisions.
Budgeting and expense management
According to recent surveys, 59 percent of consumers do not maintain household budgets and more than half say they don’t see a need to do so. However, people going through all types of divorce need to track spending and budget for expenses. It is impossible to ask the court to rule on financial issues if you cannot produce evidence of your income, resources and expenditures.
To start, you need to compile your essential financial documents:
- Bank statements
- Credit card statements
- Tax returns
- Credit reports
- Investment account statements
You must keep a ledger, dividing your spending into various categories, so you know what your fixed expenses are compared to your discretionary spending. By analyzing your spending, you can evaluate whether you are truly living within your means. Starting this process prior to filing for divorce will help your attorney help you.
Managing debt and building credit
Poorly managed finances are often a source of tension between spouses. A divorce provides the opportunity to separate your finances from your spouse’s, so you have greater control going forward. If you are divorcing a spendthrift spouse, you can breathe a sigh of relief. If you have been the spendthrift spouse, now’s the time to exercise greater discipline. Paying bills on time and paying down debt will improve your credit score, which can help you access credit on reasonable terms. Another Monitoring your credit reports for errors that can damage your score is also helpful.
Saving and investing for the future
Once you have unburdened yourself from debt, you can transition towards savings and investments in proven strategies for long-term financial growth, such as retirement accounts and diversified portfolios. Savings should be partitioned for various needs, such as home maintenance, emergencies, education, and retirement.
Seeking professional financial advice
The basic principles of financial planning, such as spending less than you earn, are simply common sense. However, choosing the best strategies for investing can be much more difficult. For example, there are tax advantages for certain types of savings, but federal tax laws can be difficult to understand. We advise our clients to seek professional advice from a reputable financial advisor. A qualified financial professional can help you in all aspects of your planning. If you need to reduce debt, an advisor can help you formulate a budget that allows you to repay or settle with creditors. If debt is not an issue, your advisor can create a comprehensive plan for savings, managing investments and preparing for retirement.
Contact our Fort Wayne law firm to discuss the financial aspects of divorce
Shilts & Setlak, LLC in Fort Wayne provides caring and capable divorce representation for clients hoping for a secure financial future. To schedule a consultation, call 260-475-3106 or contact our office online.
