A contested divorce can be a mess of emotions and defensive actions that often leaves one or both parties in a stressful financial situation at the end of the day. Between changes in marital status, the amount of income coming into a single home, and legal fees owed to representation, financial recovery can seem like an impossible feat.
While it can take years to completely recover from a contested divorce that didn’t end in your favor, the upside is, it’s entirely possible. Don’t let dwelling on financial problems hamper the next chapters of your life. Try these six tips to get yourself and your budget back on track after your divorce in Fort Worth is finalized.
Adjust to Your New Budget
Now that you’re no longer married, your expenses are going to increase while your income likely decreases. Between potential child support and spousal maintenance, your Immediate financial situation will need to be adjusted. Directly after your divorce is the time to review your budget and make a financial plan that suits your current situation and obligations.
Deal with Your Debt Head-On
After your divorce, you may be left with a debt that isn’t going to go away on its own. Take the time to sit down and create a debt plan that helps you settle any debts you have as soon as possible.
Debt is a huge stressor for everyone, so make sure that you take full responsibility for your debt now. Proactiveness with debt can save you a lot of money and frustration in the long run.
Start Building Credit in Your Own Name
If your ex-spouse was the main breadwinner in your household, you may not have a lot of credit in your name to truly start moving on. If you want to purchase a new home, new car, or even move up in some industries, established credit is essential.
Not only will paying off your debt in installments help raise your credit score, but you can also make small purchases on your credit cards and pay them off in the same month. There are even programs out there that can help you put utility and rent bills towards helping improve your credit rating.
If you have poor or zero credit, this step will take time but is well worth the effort when the time comes that you actually need good credit on your own.
We know it’s tempting to buy your way to happiness; but as we said earlier, you have a new budget and your own responsibilities to worry about. A treat for yourself every now and then won’t hurt. However, binge shopping when you’re already low on cash will only dig you deeper into an irreversible hole of debt.
You want your transition into your new life to be as stress-free as possible. So make every dollar spent worthwhile.
Change Your Employer Tax Withholding
This is a simple step but is one of the most important things you need to do after your divorce. After your divorce, your Texas tax situation is going to shift from “married” to “single,” or “head-of-household.”
Make sure that your employer adjusts your Texas tax withholdings accordingly so that you aren’t paying too much or too little on your employment taxes.
Get Financial Help if You Need It!
After going through a troublesome divorce, you may not be emotionally or mentally prepared to start putting your entire life back together.
However, without a proper financial plan, it will be difficult to even get started on total recovery. Don’t be afraid to ask for help. If you don’t know where to start with your finances, find a family member or friend who is willing to sit down and help with the basics.
Ensure a Clean Divorce with Nilsson Legal Group
If you know that your divorce is going to be a contested affair, you’re going to need a divorce lawyer that will fight for you through any obstacle. At Nilsson Legal Group, we are a team of Fort Worth divorce lawyers that can help make even the most contested divorce end in your favor.
Contact us today to learn more about our services and to schedule your free consultation with a member of our team.