Divorce can bring serious changes on the family, in terms of financials. According to studies, it concluded that parents especially the mothers found themselves living in poverty or, has substantially lower income bracket after divorce. In fact, even non-custodial parent with a decent income may experience the same thing. With regards to this matter, it is essential to form a good financial planning strategy that’ll help you avoid the shock and also, help you have an idea of what to expect. Learn more about financial planning for divorce Boston, go here.
You may want to keep on reading to learn more about the things to be done.
Tip #1. Expect the unexpected expenses – after divorce, the former spouses normally find themselves spending more money than what they should on everyday items. One known reason for this is that, they wind up buying new stuffs that they had used to disregard before such as tools, kitchen utensils, towels, cameras and so forth. When these small purchases are combined, it can result to a significant expense. Find out for further details right here http://divorcefinancialsolutions.net.
Tip #2. Determine child support – have you calculated the amount of cash that you’ll expect to receive or, that you’ll be paying for child support? If not, then you better do because the amount of child support is varying from one state to another. It will work fine for you if you will be able to find a general guideline to how the support is computed.
Experts have showed that the payments for child support do not always cover the total expense of raising a child. Thus, do not expect it to if you are the one who is receiving child support. In the event that the support is delayed, it is important that you have a contingency plan in place.
Tip #3. Consider your credit score – there is a possibility that your credit score could take a hit after divorce. This can make it much harder to apply for home loans or get a car and moreover, it could increase the interest rate on your credit, which you should factor in your budget as well.
Tip #4. Expenses could rise when you’re expecting them to fall – there are many divorce couples who assume that they can half the cost of what they spend after divorce. This is simply not true because while the living cost per house may go down, it will rise substantially on a per person basis. The reason behind this is that, you no longer benefit from economy of scale. Meaning, each of you has to maintain a separate of everything from utilities, residence, food and so forth. Take a look at this link https://en.wikipedia.org/wiki/Financial_plan for more information.