Planning for financial impacts in post-divorce life

| Jan 7, 2021 | Divorce

In the midst of a divorce case, many California residents are laser-focused on one goal: getting the case concluded. Of course, no one wants to prolong what can be an emotionally draining legal process, but the impact of a divorce case on the rest of your life can be substantial. The financial impact, in particular, can be felt for years after the legal case is wrapped up.

Planning for financial changes

As a recent news article mentioned, planning for the financial changes you may experience in post-divorce life is an important task. It shouldn’t wait until after the divorce is over. During the divorce case – and probably before you even file for divorce – it is important to think about how, exactly, a divorce will impact your life. If you can plan for financial changes ahead of time, you will likely be more prepared for accepting the differences in your post-divorce life.

The recent news article noted that, for starters, you will likely need to make changes to your household budget. After all, most people who have just gone through a divorce are now living in a one-income household, instead of a two-income household. There is no doubt that can change the dynamics of your household budget.

The article also pointed out that it is a good idea to go over your insurance polices in post-divorce life, which may need to be updated. If you have minor children, you may need to consider how you are saving for their future, especially for their education. Your retirement savings plans may change as well. In the end, the various potential financial factors will be different for any given person. At our law firm, we work with California residents who are working through these financial questions as they go through a divorce case.

 

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