Divorce means significant personal changes for both spouses. Going from being in a settled relationship to being single again can be challenging, but exciting at the same time. Another aspect that can change post-divorce is finances.
After divorce, your income and outgoings are likely to change. It can help to be as prepared as possible for this. Here are some of the noticeable financial changes that divorcees tend to notice.
From two incomes to one
Most marriages involve both spouses working. This means two incomes coming into the household. Typically, couples share financial resources. This changes after divorce. Reducing from two incomes to one can take some adjustment, but it’s still possible to thrive. You’ll need to change your budget accordingly. If you didn’t work during the marriage or may suffer a significant reduction in lifestyle post-divorce, then spousal support (alimony) may be a possibility.
Tax implications
Generally, married couples with a family get a tax deduction each year. This changes after divorce. You’ll have to file your taxes as a single person rather than jointly.
Your housing situation
Whether you are staying in the family home or moving to a new place post-divorce, this will impact your finances. Maintaining the family home costs money, and you may be tasked with paying for that on your own. If you’re moving, then you’ll need to secure a deposit. This is typically the case whether you are renting or buying.
With a few adjustments, you can continue to thrive financially post-divorce. What’s important is that you are as prepared as possible. You may also find it beneficial to seek some legal guidance.