Divorce is one phenomenon in life which has multifarious impacts. The first and foremost is emotional setback which a person takes time to overcome. Secondly, the most hit part of life is finances.
There was a time when two people used to earn for one family. There was one set up wherein two people and children used to stay. After divorce the scenario changes and there is one person earning, there are two set ups for the same number of people. The cost at which the entire family was covered, now gets doubled due to two different set ups.
If there was a mortgage which was shared between two partners, now leaves with an uncertainty. Issues like who would be paying the mortgage, who would own the house, or if at all the house would be sold off or kept back. There are insurances which probably had a joint contribution and aunts or credit cards which were operated jointly before now needs a planning in detail to be dealt with in post-divorce scenario.
Amid all this, the cost which both the partners had to bear to meet the legal requirements needs a special mention as it leaves again both the people with a big punch in the savings.
The first and foremost thing you should do is to make a plan and if required take help of an attorney who is expert in this area.
Find out the future of mortgage loans, credit cards, joint investments and finalize it by meeting your ex or else you can do this while the legal proceedings are on.
As the whole affair has punched your savings, you have to concentrate on piling up money first so that you have enough cash to make any kind of asset purchase. If you are not living in the house, which was loaned by both of you then you will have to look for another one. Even if you plan to rent one, it would demand a lot of money. If you are thinking of buying another house then down payment and other costs would involve a lot of cash, so get prepared.
The second planning you need to do will be about making short term investments and budgeting. It is very important that you budget out your inflows and outflows and invest accordingly. Remember that this investment should be regular one; this will reap you more benefits than an irregular one.
Another planning could be about your future when you wont be able to work, which means your retirement. This would actually be a long term planning and you need to start it as early as possible because a late initiation will have limited results.
Hence post-divorce financial planning can look a little tough in the beginning as emotionally you will not be in a stable state. You can take help of an expert in this area who will have a deep insight of the matter and can support you in making the right decisions when it comes to planning the finances.
There was a time when two people used to earn for one family. There was one set up wherein two people and children used to stay. After divorce the scenario changes and there is one person earning, there are two set ups for the same number of people. The cost at which the entire family was covered, now gets doubled due to two different set ups.
If there was a mortgage which was shared between two partners, now leaves with an uncertainty. Issues like who would be paying the mortgage, who would own the house, or if at all the house would be sold off or kept back. There are insurances which probably had a joint contribution and aunts or credit cards which were operated jointly before now needs a planning in detail to be dealt with in post-divorce scenario.
Amid all this, the cost which both the partners had to bear to meet the legal requirements needs a special mention as it leaves again both the people with a big punch in the savings.
The first and foremost thing you should do is to make a plan and if required take help of an attorney who is expert in this area.
Find out the future of mortgage loans, credit cards, joint investments and finalize it by meeting your ex or else you can do this while the legal proceedings are on.
As the whole affair has punched your savings, you have to concentrate on piling up money first so that you have enough cash to make any kind of asset purchase. If you are not living in the house, which was loaned by both of you then you will have to look for another one. Even if you plan to rent one, it would demand a lot of money. If you are thinking of buying another house then down payment and other costs would involve a lot of cash, so get prepared.
The second planning you need to do will be about making short term investments and budgeting. It is very important that you budget out your inflows and outflows and invest accordingly. Remember that this investment should be regular one; this will reap you more benefits than an irregular one.
Another planning could be about your future when you wont be able to work, which means your retirement. This would actually be a long term planning and you need to start it as early as possible because a late initiation will have limited results.
Hence post-divorce financial planning can look a little tough in the beginning as emotionally you will not be in a stable state. You can take help of an expert in this area who will have a deep insight of the matter and can support you in making the right decisions when it comes to planning the finances.
SHARE
