Although you may be relieved to have your divorce finalized, post-divorce life will still present some challenges, especially when it comes to your finances. There are some common post-divorce mistakes you should avoid to ensure that this new chapter in your life goes smoothly.
Mistakes to Avoid for a Better Future
A lot about your life will change after divorce and it is important to adjust to these changes accordingly instead of trying to maintain the life you had before.
Here are some common post-divorce mistakes you should avoid:
- Failing to create a new budget: Your finances will change after your divorce, even if you were the spouse with the higher income. Not making a new budget to accommodate those changes is a big mistake that can put you in a financial predicament.
- Dipping into retirement assets: If you are strapped for cash, consider a personal loan. If you dip into your retirement savings, you will have to pay a penalty tax on the withdrawal and income tax on the amount you take out. Moreover, taking money out of retirement is borrowing money from your future.
- Failing to consider the tax implications: Your divorce will change your filing status, the income you have for the year, and how much you owe, so you should not neglect the impact this will have on you. Consider reaching out to a financial planner to discuss your new tax situation.
- Treating yourself: Self-care is important after divorce, but you should not fall into the treat yourself trap. Sure, there is nothing wrong with a small pick-me-up, but avoid more extravagant expenses in the name of serotonin. You do not want to go into debt as you start your new life.
Discuss the Details of Your Case with a Knowledgeable Family Law Attorney Today!
If you are filing for divorce or in the middle of another family law matter, do not hesitate to reach out to the team at Crossman & McNamee, LLC for the help you need. We have the experience, knowledge, and insight to guide you through your case and protect your interests. With our team on your side, you can feel confident that your case is in good hands.
Reach out to our law office today at (937) 468-3796 to schedule an initial consultation with one of our attorneys to get started on your case and learn more about what our team can do for you.