A divorce drastically alters a person’s life. The effects of divorce on finances are one of the biggest adjustments; from having a joint home with two distinct salaries, spouses transition to living apart and providing for themselves alone. Getting help from a Boston divorce attorney is generally a good idea. You may take many steps to prepare for your financial future after a divorce, whether you are thinking about getting divorced or have already filed for divorce.
- Make a budget by calculating your weekly and monthly spending based on your household’s expenses.
Do not forget to include additional typical costs like uninsured medical costs, motor vehicle expenses, care for children, vacation and entertainment costs, and education costs for you and your children, in addition to the usual ones.
Once you have created a budget, look at your current income and what it will likely be after the divorce. If you are paying or receiving alimony or child support, do not forget to consider it.
- Determine Your Future Income:
When creating your budget, you should consider your future income, which may change due to the divorce. You will be aware of your expected salary if you have a job. However, you should also consider whether you will pay or receive alimony and/or child support.
In Massachusetts, if the child attends college, the child support order might last until the child is 23. When calculating their combined income, spouses should take this into account.
- Identify the assets you will receive as part of the divorce:
All marital property is distributed as part of a divorce. This covers the spouses’ financial assets, including bank deposits, investment accounts, retirement funds, shares, potential inheritance, real estate, business interests, automobiles, personal property, and other assets. Consider your earnings and spending plan while discussing the split of assets. Which would be preferable for you: receiving real estate or liquid assets like investment accounts? The answer to this issue depends on the details, so consider your situation and what will best serve your needs when the divorce is finalized.
- Begin to live independently of your spouse financially:
You will want to establish financial freedom from your spouse as soon as your divorce proceedings get underway. According to Supplemental Probate and Family Court Rule 411, Massachusetts prohibits the depletion, transfer, or encumberment of marital assets. Thus, you cannot sell off, withdraw money from, or transfer any assets. However, opening your own bank account will allow you to start living independently financially. You may start putting money into the account as soon as it is opened and use it to pay for your usual living expenses.