Have you recently been divorced? Think back to your mindset at the beginning of your case. Were you worried about the future? Were you concerned about how your children would react to all the changes? Or were you concerned about how you would respond to all the changes in finances post-divorce? What about the new lifestyle you would be living due to your divorce. Would you be able to adapt adequately to your new, single-income household?
Now that your divorce is finally over, you can re-approach all of the questions that I laid out in the opening paragraph of this blog. What’s more important is that now you can do something about those issues according to your own goals and own timeline. There is no holding you back- unless, of course, you are the one holding yourself back.
Rebuilding Finances: A Post-Divorce Blueprint
In my experience working with individuals who are either divorced or in the process of finalizing their divorce, it’s common to feel somewhat shell-shocked after concluding the process. No more battles to fight, no more negotiation sessions to attend- just you, your children, and the rest of your lives to look forward to. You might even sense that the divorce has changed a part of you, for better or worse.
Many people feel like they cannot trust themselves like they once did after a divorce. The whole divorce process is, at its core, a realization that somewhere along the time, you and your ex-spouse made a mistake or two (or three). I’m not saying the marriage itself was a mistake, but for many, it probably was. You must now gather the pieces of your life and assemble them into a structure designed to endure for years.
With all of that said, now that you have the chance to make a change and chart a course for yourself in your post-divorce years, it would behoove you to do so. The best time to start planning for your future is ten years ago. The next best time to start planning for your future is today.
Today the attorneys with the Law Office of Bryan Fagan, PLLC, will discuss with you how to plan for your financial future after a divorce. We will present some tailored advice that typical financial advisors may not offer.
Navigating New Financial Waters: Adjusting to Single-Income Living
The simple math I am referring to is that you most likely lived in a household with two incomes (yours and your spouse’s). Now, you are living by yourself as a single adult. Maybe your kids live with you, and perhaps they live with your ex-spouse. The fact is that you will probably have less money to operate with than you did just a few months ago.
This will emphasize budgeting and watching your money. It would be best to be intentional with your spending as you approach your new life as a single adult. From my experiences, you cannot simply drift along from a financial perspective and expect to win with money. You need to tell your money where to go and make changes along the way as you develop a new lifestyle.
If you cannot afford to live in your previous area, you may need to move. Daycare or after-school activities may need adjusting until you understand your new financial status.
Spousal maintenance counts as income, so you must pay taxes on it each tax-year quarter. If you own a small business, you should be familiar with this process. Failing to pay taxes on time will result in a big tax bill in April, potentially causing financial strain.
Considering Social Security and Its Impact on Your Finances Post-Divorce
If you are under fifty, you might not have considered Social Security’s impact on your life. If you and your spouse were married for over ten years, know your eligibility for Social Security based on your marriage to your ex-spouse.
You may be eligible to receive benefits under their name. Send in a copy of your marriage license and divorce decree to the Social Security Administration.
When you become eligible for Social Security (usually at 62), you can receive benefits based on your benefits or fifty percent of your spouse’s, whichever is more significant. Remember, you must apply to receive these benefits; they won’t automatically appear in your bank account just because you turned 62.
Final Thoughts
By now, you know that divorce is a process that brings change. That change is unavoidable and can be significant. Likely, you will face challenges but also encounter opportunities because you stuck with the process and saw it through to the end.
To speak with one of our licensed family law attorneys, please do not hesitate to contact our office today.
Other Related Articles:
- Behaviors Indicating a Spouse Is Hiding Assets During Divorce
- Worried About Your Personal Finances as a Result of Your Divorce? Read This Blog Post
- Can I lose half my business in a Texas divorce?
- Why Tracing Matters for a House Bought Before Marriage in a Texas Divorce
- Breaking Down Divorce Costs in Texas What to Expect and How to Budget
- Post-Divorce Implications of Residency Restrictions on Your Child
- Strategies for Navigating Post-Divorce Life: Practical Tips for Dating Again
- Post-divorce maintenance in Texas: A comprehensive divorce exploration
- Children and Taxes Post-Divorce: The Basics
- Navigating Post-Divorce Changes: A Guide to Child Custody Modifications
Bryan Fagan, a native of Atascocita, Texas, is a dedicated family law attorney inspired by John Grisham’s “The Pelican Brief.” He is the first lawyer in his family, which includes two adopted brothers. Bryan’s commitment to family is personal and professional; he cared for his grandmother with Alzheimer’s while completing his degree and attended the South Texas College of Law at night.
Married with three children, Bryan’s personal experiences enrich his understanding of family dynamics, which is central to his legal practice. He specializes in family law, offering innovative and efficient legal services. A certified member of the College of the State Bar of Texas, Bryan is part of an elite group of legal professionals committed to ongoing education and high-level expertise.
His legal practice covers divorce, custody disputes, property disputes, adoption, paternity, and mediation. Bryan is also experienced in drafting marital property agreements. He leads a team dedicated to complex family law cases and protecting families from false CPS allegations.
Based in Houston, Bryan is active in the Houston Family Law Sector of the Houston Bar Association and various family law groups in Texas. His deep understanding of family values and his professional dedication make him a compassionate advocate for families navigating Texas family law.
