Tips For Avoiding Financial Problems After Divorce
When you are planning for a divorce in California, it is critical to think about finances and to be thinking ahead about your budget after your separation and divorce. People might avoid filing for divorce because they are concerned about what their financial situation will look like when they are living on a single income. At the same time, as an article in Psychology Today underscores, financial issues can also exacerbate marital problems and can lead to divorce. To avoid having financial issues follow you into your post-divorce life, or to avoid experiencing financial distress after your divorce, you will need to make a financial plan for yourself. Even if you earn a relatively high income, it can be difficult to adjust to a single income after you go through a divorce. The following are some tips from our San Jose divorce attorneys for avoiding financial problems in your post-divorce life.
Plan for Half of Your Community Property
First, it is important to plan to have half of the value of your community property. As you may know, California is a community property state, which means that all community assets and debts are typically split evenly between the spouses in a divorce. When you are considering the assets that you will have in your post-divorce life, you should work with an attorney to determine which assets are separate (which you will keep) and which are likely to be considered community assets and divided. In addition, when you are accounting for the assets you will have in your post-divorce life, you should also account for the division of community debt.
Make a Feasible Budget With Your Post-Divorce Income
Think carefully about the assets you are likely to have after your divorce and your likely income, and make a budget that is actually feasible. In other words, do not make a budget that is unrealistic or that you will not be able to stick to. Instead, create a budget that will be within your means after you are living without your ex while still accounting for recreational activities, travel, and any other expenses that you have become accustomed to paying for and occasionally splurging on.
Consider Higher Housing Costs
When you are making a post-divorce budget, you will need to account for higher housing costs. Not only will you be responsible for a mortgage or monthly rent payment on your own, but upkeep costs associated with your home will also be paid only by you rather than being shared with your ex.
Factor in Childcare Expenses
While certain childcare expenses may be part of the child support calculation, it is important that you do not forget to account for childcare expenses that are not already part of a court order (or that are unlikely to be part of a court order). For example, you will need to consider babysitter costs if your child is not in school or at a previously planned activity.
Contact a Divorce Attorney in San Jose
When you have questions about divorce in California or any financial issues concerning divorce or property division, you should get in touch with one of the experienced San Jose divorce lawyers at Foster Hsu, LLP for more information.