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Steps for Budgeting After Divorce
Rebuilding Financial Stability After the Divorce Process
When going through a divorce, you will find every aspect of your life significantly impacted. Divorce is emotionally draining, and can cause stress and anxiety, along with many other feelings stirred up by the end of a marriage. Additionally, it has a massive impact on a person’s finances. The dissolution of a marriage can means loss of income, division of assets, and a change in living arrangements. Both parties may be left financially vulnerable, so it is important to be proactive in rebuilding your financial stability. While this can be a long and arduous process, it all starts with a post-divorce budget.
Assessing Your New Financial Reality
The first step in taking control of your financial situation during a divorce is to go through all your financial documents. Credit card statements, loans, paperwork for joint assets, and an inventory of household goods that may end up being negotiated in court. Make a list of all sources of income and all expenses, to get a clear picture of your financial situation. In addition to your salary, list bonuses, investments, social security, retirement, and any other sources of income. You don’t have to be completely specific regarding all your expenses, but include things like rent or mortgage, insurance, vehicle loans, credit cards, utilities, food, and other monthly expenses. Once you understand your financial standing, including how much money is coming in and going out, you will have a firmer footing, allowing you to move forward.
Setting Financial Goals for a Budget After Divorce
When determining your budget after the divorce, make sure you are thinking about your net income, rather than your gross income. Remember that taxes, payroll deductions, and social security will all come out of your paycheck up front, and the money you will have to work with will be what is left. Write down all your essential expenses, including housing, child support or alimony, insurance, groceries, utilities, and transportation. Identify the essential expenses, and subtract those from your net income before you begin considering non-essentials. With your essential life expenses, work on building an emergency savings fund and planning for your future. This may seem unrealistic, but it is important to think about unexpected expenses and planning for life moving forward.
How to Budget After Divorce with Practicality in Mind
Once you have calculated the amount of money you will need for your living expenses, it’s time to add in the non-essentials. This includes entertainment, dining out, and other niceties that aren’t necessary. Understanding both essential and discretionary expenses allows you to strategize for things that are important to you. Consider using budgeting software to help you stay on your budget, and review it periodically to make sure you are on the right track.
Adjusting to Single Income Living
If you have been accustomed to being part of a two income family, making the shift to a single income can be challenging. This is why it is important to have an experienced divorce attorney on your side during divorce proceedings, to make sure the settlement is fair and equitable. If you are the spouse paying alimony or child support, the goal should be to provide support without stripping you of the means to make ends meet. If you receive alimony or child support through your settlement, it should be enough to help you support yourself. In either case, it may be necessary to pick up a side job, like freelance work, to boost your monthly income.
Revisiting Legal and Financial Paperwork
A divorce settlement is intended to be final, but there are some cases in which it can be revised. If either party presented fraudulent information to the court, or if the income or expenses of either party changes, there is a possibility that the judgement will be set aside and revised. However, courts typically take a limited approach to adjustments, having to do with income fluctuations. A person losing his or her job is unlikely to have reduced spousal support, and an investment that increases or decreases in value probably won’t be a significant factor in revisiting the settlement. There are some cases in which there is an unforeseeable change, like an unexpected inheritance or a significant drop in the value of an asset.
Resources for Financial Recovery Post Divorce
As with every aspect of a divorce, you do not have to go alone. With the help of a family law attorney, you can successfully navigate this sometimes harrowing process, to achieve a fair settlement and have a reasonable handle on your finances as you move forward. Consider reaching out to a financial professional, too, if you are struggling. A trained accountant can help you make sense of your finances and build a better budget.
Consult the Experts in Divorce Law for Help with Every Aspect of Your Divorce
Since 1981, the Law Office of Kent L. Greenberg has been successfully assisting clients in the Baltimore County area. Our seasoned professionals work hard to resolve our clients’ legal issues, comprehensively evaluating each case to determine the best strategies for handling each unique situation. Each divorce and family law issue are unique, and there is no one solution to meet every need. Having effectively handled numerous cases in our decades of experience, our firm understands the laws and protocols specific to Maryland, and will put our knowledge and expertise to work for you. When you have a domestic legal issue, you can trust the Law Office of Kent L. Greenberg to work to achieve the best possible decision in line with your best interests. If you are looking for legal services in Carroll County, Pikesville, Owings Mills, or Baltimore County, Maryland, contact us through our website to schedule a consultation.
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Why Legal Guidance is Essential in Your Divorce Case
The Emotional and Legal Intricacies of a Divorce Case
Divorce is a complex process and can be emotionally overwhelming. Deciding to divorce should never be done lightly, since it is one of the most important decisions a person can make. Before deciding on divorce, take some time to reflect and determine whether it’s the right decision. A divorce is more than just a breakup, and impacts every aspect of the couple’s lives, including their finances and their relationships with others in their family. After thoughtful consideration, if you decide that a divorce is your only option, remember that divorce is legally complicated. Educating yourself about the divorce process and the laws in your state can be helpful, but ultimately, you need an experienced attorney to help you navigate this new territory.
The Challenges of Family Law and Divorce
As complicated as divorce can be, it is even more difficult when there are children involved. When there are children in a family that is divorced, the needs of the children must be prioritized. Within the family, it is important to keep communication open, explaining things in an age appropriate way and reassuring the children, to help them cope with their changing family situation. From a legal standpoint, child custody and support must be determined following state law. A divorce lawyer can help you develop a coparenting plan that details how parents will share the responsibilities of raising children, taking into consideration schedules, holidays, and how you will communicate. It can be difficult to find solutions regarding these sensitive subjects without the support of a third party who is not emotionally invested.
Navigating Complex Legal Processes in Divorce Law
Sometimes, couples choose to settle their divorce themselves, but this can be a poor decision. An agreement that isn’t executed correctly may be non-enforceable, and this can end up drawing out the divorce process or causing additional expense. What’s more, if you are not an attorney, you may have trouble understanding complex legal terms, and this can put you at a disadvantage. A skilled divorce attorney knows how to protect your legal rights and can anticipate future disputes and draft the precise language and legal safeguards that will prevent these. Having an attorney on your side means your paperwork will be drafted and filed correctly, the letter of the law will be followed, and all deadlines will be met.
How a Divorce Lawyer Helps Ensure Fair Outcomes in Property Division and Custody
In addition to a co-parenting agreement, property division, spousal support, and child custody will need to be determined. Determining spousal support can be tricky, because it is based on factors like each spouse’s financial needs and earning ability, as well as the length of the marriage. Coming up with an equitable plan for the family as you move forward into a new reality requires the expertise of a divorce attorney.
Preventing Costly Mistakes with the Help of a Divorce Case Lawyer
Divorce can be an expensive process, and it may seem like you can save money by settling the case yourself instead of hiring an attorney. Unfortunately, this can lead to problems later. A divorce lawyer knows how to scrutinize financial information and look for hidden assets, and this can prevent an unequal division of property or unfair spousal support. Further, while a divorcing couple may miss some long-term aspects of financial planning, an attorney has a full understanding of issues like inflation, retirement, and tax implications. Having an expert working on your divorce settlement makes it more likely that you will end up with a fair settlement, with neither party at a disadvantage.
The Long-Term Impacts of Legal Guidance: How Long Does a Divorce Case Last?
The length of a divorce case can vary, depending on the complexity of the negotiations. While a simple, uncontested divorce can sometimes be settled in just a few months, contentious divorces can take a year or longer. Having an experienced attorney on your side means making the most of that time, drafting a plan that will work best for your family in the long run. A forward-thinking attorney will help you reach a settlement that takes future challenges into consideration, so that the risk of post-divorce disputes is lowered.
Finding the Right Family Law and Divorce Attorney
All attorneys are not the same. When you are going through a divorce, you need an advocate who will understand your situation and help negotiate a settlement that is in everyone’s best interests. Look specifically for attorneys who specialize in your type of divorce, and research the attorneys you are considering so that you can evaluate their experience and make the right decision.
Whatever Your Divorce Case Status, Trust Us to Help
Whether you are just beginning the divorce process or stuck in a legal quagmire and need assistance finding your way out, it helps to have an experienced, compassionate family law attorney on your side. Since 1981, the Law Office of Kent L. Greenberg has been successfully assisting clients in the Baltimore County area. Our seasoned professionals work hard to resolve our clients’ legal issues, comprehensively evaluating each case to determine the best strategies for handling each unique situation. Each divorce and family law issue are unique, and there is no one solution to meet every need. Having effectively handled numerous cases in our decades of experience, our firm understands the laws and protocols specific to Maryland, and will put our knowledge and expertise to work for you. When you have a domestic legal issue, you can trust the Law Office of Kent L. Greenberg to work to achieve the best possible decision in line with your best interests. If you are looking for legal services in Carroll County, Pikesville, Owings Mills, or Baltimore County, Maryland, contact us through our website to schedule a consultation.