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Divorce and financial stability

On Behalf of | Aug 22, 2022 | Divorce |

When a marriage starts to fall apart, both spouses may focus almost exclusively on their current problems. Separating from one another and filing for divorce could be the two most critical steps, but the spouses may benefit from looking ahead. A final divorce decree will legally dissolve the Michigan union at some point. Afterward, the newly single people may need to establish a path to post-marriage financial independence.

Plans for financial independence

Financial independence does not necessarily mean that someone must focus on building significant wealth. A person who avoids excessive debt, earns a decent income and puts money away into their savings could become financially secure. Such a path might start with devising a logical budget and income strategy.

While married, a two-spouse income might support a particular lifestyle. Things could change when one person must survive on a single income. Therefore, choosing living arrangements, a vehicle, leisure activities and an overall lifestyle based on one salary might be necessary. Cutting back on expenses may not be preferable, but it could eliminate some financial worries.

Taking a second side job or putting more money into safer, long-term investments might be advisable. Ultimately, anything focusing on financial stability could work in a recently divorced person’s favor.

Financial concerns during the divorce proceedings

Money matters play an essential role in many divorce negotiations. Both spouses might have interconnected assets and liabilities, and settlement negotiations might focus on who receives and pays specific items. A mindset focusing on costs and expenses after the marriage may guide both spouses to a levelheaded approach.

Effective budgeting could help the cause. Fighting over a house that may prove unaffordable on one income might be illogical when selling the home makes more sense for everyone.

Seeking appropriate spousal support may help one spouse through the initial post-marriage years. Ultimately, there are many financial issues to consider when asking for support or dividing assets.