It's only natural that worries about your children can take up all of your time during a divorce, but failure to attend to the below financial issues are bound to cause problems later on. Read on and get the scoop on some financial situations that you might need to pay attention to now and that might pay off for you later on.
Budgeting 101
Your financial situation is about to undergo a big change and you will want to stay on top of it by adjusting your monthly budget pronto. Budget-making can get tricky when you are dealing with issues like spousal and child support and a spouse that may still be paying some of the bills. You may not know where your budget will be in a few months or in a year, but you can definitely get an idea of what the next three months will be like. You cannot, however, just put your head in the sand and wait for it all to be over with because property and debt divisions and different forms of support are connected to your budget and your future well-being.
Take the house
You might be forgiven for just automatically longing to have ownership of the family home. Staying in place can provide both you and your children with a much-needed sense of security at a crucial time. On the other hand, making this decision without taking the full financial impact of being a homeowner into consideration would be a huge mistake. Homes are not just about mortgage payments, so get out your calculator and take a look at the total cost of things that are both regular expenses and irregular needs. Such as:
- Homeowners' insurance
- Property taxes
- Mortgage insurance
- Yard and pool care
- Regular maintenance and repair of the home's air-conditioning and heating system
- Utility costs
- Painting and cleaning costs
- Plumbing, roofing, and electric systems repairs
True values
While you might recognize your family home or the car as being valuable, there may be hidden value in other pieces of property that you might not have considered. An asset should be evaluated not just for its present value but for what it might grow into or provide in income. You may claim that you are not interested in the mountain cabin but have your considered the income it might bring if you put it up for rent for vacationers? Other assets with a potential for growth are investment accounts, stocks, and bonds.
Speak to your divorce lawyer, someone from a place like Armstrong Betker and Schaeffer PLC, to learn more.
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