Avoiding Unnecessary Monetary Surprises
It’s no secret that many aspects of a person’s life will change after divorce. Maybe no area of one’s life will feel those changes more than their financial life. With one spouse gone from your life, their income is gone, as well.
Here are some tips you can follow to get a head start on planning your financial future for life after divorce.
Make Projections Based on the Changes
With the many changes that are coming, it may be helpful to try to gain as realistic a picture as possible of what your income will look like and how much you will be spending each month. With your spouse’s income now gone, you will want to determine what you can and cannot afford each month.
Begin by looking at your normal monthly expenses and factor in any additional expenses that may have been added to your ledger from divorce, such as the mortgage or a car payment. You should also factor in any normal savings you put aside each month. Once this step is completed, weigh these amounts with what your monthly income is after removing your spouse’s normal contribution.
Based on what you determine, whether you are able to make everything work or you need to make adjustments, be sure to follow through on the results of your projections. With an accurate picture of what you may be paying and saving, you can move forward confidently.
Consult with a Tax Professional
With the many changes coming to your life after divorce, you might forget that you still are responsible for paying taxes; what you may not know, however, is that how much you may pay or owe each year may change.
With the change in your relationship status comes the need to update your filing status. Since you are no longer married, you can no longer claim that tax benefit and will have to choose a different status. Changing from married also can impact what tax bracket you are placed in based on your income.
In addition to this change, you may also wish to update your withholding status or may be responsible for taxes based on the assets you get after divorce. Be sure to consult with your local tax professional to gain the clearest picture of the tax changes coming to your life.
Ask Your Attorney
If you are unsure of what an aspect of life may look like after divorce, whether it be financial or otherwise, be sure to speak with your attorney for your divorce who can provide you with the guidance you need to make an informed decision. At Levine Law Center LLC, our team can help you gain the clearest picture of life after divorce and can guide you through the process to get there.
Learn more about divorce in Oregon or speak with a member of our Portland attorney team by calling us at (503) 433-8340 or by visiting our website.