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Managing Your Post-Divorce Finances

For many people, the biggest problem with filing for divorce in Pasadena is that they have the same income and two households to support. Without careful budgeting, this means it's easy to find yourself deeply in debt.

When you're negotiating your divorce settlement, it's crucial to have an accurate idea of how much money you're spending. Keep track of receipts for every expense, even small things like fast food meals or contributions to a coworker's birthday gift. If your expenses are out of line with your new household income, look for as many ways to save money as possible. Double check fixed expenses like your cell phone plan and health insurance costs to make sure you are paying the lowest possible rates. Cancel gym memberships you don't use, carpool to work, or set limits on the number of restaurant meals you have each week.

If you're planning to ask for additional child support to help cover medical or educational expenses for your children, you'll need to be able to produce detailed records showing what you spend in a typical month. Ask your Pasadena divorce lawyer how you should be documenting these expenses.

It is natural to have an emotional attachment to the family home, but keeping a house you can't afford is a recipe for financial disaster. Don't forget that being able to "afford" a home means paying for maintenance, insurance, and taxes in addition to the monthly mortgage payment.

You'll also want to avoid making the mistake of taking possession of the marital home in exchange for a smaller share of assets, such as your spouse's pension. While not having to move gives you short term security, pension payments help ensure long term financial stability.

How Can We Help?

Even if you consider yourself fairly money savvy, it's always a good idea to speak with a financial planner. They can provide personalized advice to help make sure that you're able to get back on your feet as soon as possible.

If you, or someone you know, needs help finding a financial planner with experience in divorce and post-divorce financial matters, please feel free to contact our office at info@PasadenaLawOffice.com or call (626) 683-8113. We're here to help in any way we can.

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