The end of a marriage will bring a number of changes to Colorado spouses. In addition to the shift in daily routines, there are a number of financial matters that will be impacted by the transition from one household into two. Anticipating those changes and making sound financial decisions to support one’s goals is critical to a successful outcome. The following tips are offered to help spouses begin planning their financial future while they are still in the early stages of divorce.
Each spouse will go through significant changes in his or her financial standing once the divorce has been made final. These shifts are different for everyone and depend in large part on the choices made during the marriage. In many cases, spouses will go from a two-income household to one in which there is only one earner. Expenses may increase as the cost of maintaining a household will now fall entirely on each party’s shoulders. Spouses should also keep in mind any cost factors directly associated with the divorce such as child support, alimony or debt service.
The next step is to revisit one’s savings and investment strategies. There is often a need to alter the approach after a divorce has taken place. Savings goals have likely shifted now that each individual is focused solely on his or her own financial needs. By taking the time to restructure one’s savings plan, it is possible to continue building the foundation for a stable future.
These are just some of the financial planning steps that should be taken during a Colorado divorce. Each spouse will have a unique set of needs, but everyone can benefit from taking the time to review his or her current and projected financial standing and plan for the future. For many spouses, looking at such issues now can have an impact on the decisions that will be made during the property division process.
Source: The Huffington Post, “Newly Divorced? Focusing On Finances Can Help You Move On“, Bob Stammers, Jan. 29, 2016