Analyzing Your Financial Future
Divorce affects a person’s emotional well-being, but it is also important to recognize that this type of life change can have significant financial implications as well. As you navigate through the complexities of divorce, assess your financial future carefully and make plans each step of the way.
If you have recently separated and are looking for guidance, connect with Orlando divorce lawyer to discuss analyzing your financial situation, evaluating your household budget, and addressing insurance and tax concerns.
Assessing Your Household Budget
When navigating any large life change it is essential to evaluate your current household budget and understand how the change will impact your finances. To start, take an in-depth look at your income, expenses, and assets. Then, consider what your marital household budget is today and what you expect your budget could be post-divorce. Some of the key consideration you will want to review:
- Document your individual income and what your joint income was prior to your separation. There will likely be changes you have experienced as you have separated as well, including separation agreements that outline spousal support or child support payments.
- Once you have an income amount in place, you can analyze if that will cover your monthly expenses, including housing costs, utilities, transportation, healthcare, and childcare. If you need to make any adjustments, identify areas where there can be shifts to accommodate your current financial circumstances.
- Assets and liabilities. During a Florida divorce, assets and debts will be reviewed and divided. This includes property, investments, bank accounts, and debts. Consider how your household budget could be impacted. For example, if you want to retain the marital home could you afford to make the full mortgage payments or would you need support payments to handle that ongoing debt obligation.
Marriages that carry significant debt loads can lead to complicated divorces. Work with a divorce lawyer to divide debt responsibility between you and your spouse. In the state of Florida, equitable distribution rules are followed, which means debts are typically divided fairly, considering each party’s financial situation.
Insurance and Tax Considerations
It is common for insurance issues to be overlooked when divorcing, but reviewing your insurance needs is essential. You will need to evaluate your healthcare coverage options, especially if you were previously covered under your spouse’s plan, and review any existing life insurance policies and update the beneficiaries to align with your new circumstances. Also, reassess your homeowner’s or renter’s insurance and auto insurance policies to ensure they reflect your current situation.
Additionally, consider the tax implications of receiving or paying alimony and child support, and identify how dividing property, such as real estate or investment accounts, could lead to tax payment responsibilities.
Have you made a plan for your finances post-divorce? When facing divorce in Florida, analyzing your financial future is crucial for a smooth transition into post-divorce life, discuss the particulars of your situation with the family law attorneys at Donna Hung Law. Call 407-999-0099 or contact us online to book your consultation.