Finances are always a difficult issue to tackle, whether you are married or single. However, if you are recently divorced, you have some major changes and tasks ahead of you in order to safeguard your financial situation and safeguard your future.
First, be sure to build an emergency fund as quickly as possible. Many recently divorced individuals do not have sufficient liquid emergency funds on hand following the divorce, either because they have paid attorney’s fees, paid an ex-spouse as part of a property settlement agreement, or focused on paying off joint debts. Having an emergency fund on hand is key. When an emergency arises, you can use your emergency funds rather than run up a credit card bill or take out a short-term loan at a high interest rate.
Next, make sure that your retirement goals are on track. Too many individuals tend to focus on their children rather than their own security during retirement. While this is easy to do, it can spell disaster in your retirement years, especially if you are older when you divorce. Take stock of your existing retirement assets and work with a financial planner, if necessary, to tweak your investments and calculate how much you should be putting back each month toward your retirement goals.
Evaluate your debt. If you are carrying a significant amount of debt for which you are responsible according to your divorce decree, you need to develop a plan to pay it off as quickly as possible. Set up a realistic budget with the goal of paying down your debts.
Likewise, consider your living situation. If you received the marital home from your divorce, ask yourself whether you really afford to keep it? While the desire to keep your children as stable as possible is certainly important, so is being able to survive on your income and provide for your family’s financial needs. It may be wiser to sell the home, downsize, and use the proceeds to pay down debt and/or plan for retirement.
If you wish to explore the different avenues for handling your financial matters following your divorce, the Shaw Law Firm, LLC, can assist you. We will evaluate your situation and advise you about the pros and cons of different options related to all aspects of your financial situation.
Contact us or call today to learn how Shaw Law can work with you to achieve the best outcome possible for you and your children.
Scott Shaw is founder and principle of Shaw Law Firm LLC, founded in 1995 and dedicated solely to divorce, family law and child custody matters that must be addressed and decided in the state of Georgia. Shaw Law Firm serves the greater Metro Atlanta area, particularly the counties of Fulton, Gwinnett, Cobb, Cherokee, Forsyth, Paulding, Henry, Fayette, Coweta, Newton, Walton, Bartow and Douglas. Schedule a consultation today at 770-594-8309.