Three things to consider in planning your post divorce life

In a prior post, we highlighted how complicated Johnny Depp’s divorce could be given the disparity in incomes between the parties, and how the issues that can arise when attempting to determine future income from the value of present work. We also noted that many of us in San Jose don’t have the income of a Hollywood star. Because of this, most divorcees will have to live on one income or seek temporary support in lieu of a support order. In either case, taking steps to maintain financial stability during the divorce (and after the divorce) is critical.

This post will focus on three helpful tips so that you can achieve your goals.

  1. Create a post-divorce budget – Keep in mind that you are likely going to be starting over, so you should have a budget that considers your new income; or at least the income that you will be living without. You may also have to cut back on previous expenses, or get a second job. Either way, being realistic about your new financial situation is important.
  2. Keep track of your credit report – You should monitor report to dispute any charges or open accounts that you are unfamiliar with. After all, your ex could have opened additional accounts attributable to you without your knowledge. Also, you will know about joint liabilities that may follow you even after your divorce is finalized.
  3. Meet with your financial advisor – Divorcees still want to retire someday. But with a new income, it would be advisable to meet with a financial advisor to get an understanding of what you may need to save or what you need to change with regard to your spending in order to achieve your goals.