Ending a marriage will bring financial changes, and both California spouses will have to make adjustments going forward. Lifestyle expectations may change, and the higher earning spouse or custodial parent may also have new financial obligations due to spousal support or child support payments. These are a few reasons why it is critical to make smart choices that will allow for a strong financial future after the divorce is final.
A prudent place to start is simply to adjust the budget where it is necessary. Even before the divorce is final, it may be helpful to consider a monthly budget that reflects current circumstances and potential future circumstances. This means considering current income, future support payments, cost of living independently and more. Making adjustments now can help avoid financial hardship in the months and years after divorce.
It is also important to consider steps that will be beneficial long term. This may include updating beneficiary designations for insurance and other types of accounts. Saving for retirement may take on a new urgency for someone who has had to split long-term savings in a divorce. Planning for the future can start as soon as possible after a divorce is final, and it is helpful to make decisions that will have a long-term benefit.
A California spouse navigating divorce may be tempted to make decisions based on how he or she feels in the moment. In reality, temporary feelings are poor indicators of what will truly work well long-term. Decisions made now will have an impact for months and years to come, which is why it’s important to take these decisions seriously.