Your high asset divorce will likely have a profound impact on your financial well-being and lifestyle. Even with a fair division of assets and alimony equaling the playing field, it’s common for both parties to notice a significant decrease in liquidity and overall quality of life. This is natural—moving from one household to two comes with additional expenses, and both parties will feel that strain.
While this may require some adjustment and reflection, it isn’t impossible. Learn more about adjusting to lifestyle changes after divorce, and for more personalized assistance with your divorce, call Kirk Drennan Law at 205-953-1424.
Know the Challenges That Lie Ahead
Simply knowing what life changes to expect after divorce can give you some sense of relief. When the future is completely unknown, we have a tendency to imagine the worst possible outcome. If you know what’s coming your way, you can start to prepare mentally for it.
Expect a significant financial shift in your life. Between attorney’s fees, alimony, child support, and the loss of some assets, your entire financial status may be in upheaval. A split can also have a detrimental effect on your social life. In some cases, a couple’s social network can completely circle around a wronged spouse, leaving the other out in the cold. In most cases, though, it’s a lot messier. Friends choose whom they want to be loyal to, while some choose to remain neutral and try to maintain both friendships. Whichever way your friend circle goes, it will be a change.
Your lifestyle may also change substantially because of changes in housing and parenting duties. Whether you see the marital home or move, the tasks associated with maintaining a household now fall squarely on your shoulders. No matter which type of custody schedule you have, it will likely require quite a bit of flexibility and adjustment on your part.
Get a Handle on Finances and Budgeting
Effective financial management should be one of your top priorities after a divorce. Without an honest look at your finances, you risk spending like you did when you were married and running up debt. Spend an afternoon taking a transparent look at your finances. Calculate your debts, monthly obligations, and sources of income.
From there, create a comprehensive budget. Get as detailed as you can—that includes budgeting for annual car registration and vet visits for pets. The more detailed you are, the less surprised you’ll be when unexpected expenses arise. Concentrate on building up your emergency fund if you have minimal to no savings after your divorce. Don’t forget to think about your future—retirement planning should be high on your list of priorities. If this is all overwhelming to you, investing in a session with a financial planner can help you get some insight.
Consider Necessary Lifestyle Changes
If your expenditures and income don’t quite match up, it’s time to make some tough choices. Looking at your budget, you likely know where you can cut back. Now it’s time to make the call and actually get rid of some of those expenses. You may want to relocate to save money on housing, cut back on luxuries, and look for less expensive ways to entertain yourself and your children. You can make a positive change in your life by focusing on your health and well-being at this time. It’s too easy to get caught up in the rush of daily life after divorce, and that often means sacrificing your health and self-care.
Think Ahead to the Next Stage of Your Life
Major changes are hard, but thinking ahead to the future can give you clarity and hope. What do you want the next five or ten years of your life to look like? What goals do you have and what steps must you take to reach them? Are you ready to dig into your work and climb the ladder, or is it time to cut back and spend more time with your children and loved ones? What goals and dreams did you put aside during your marriage that you can now work on?
Facing Divorce? Reach Out to Kirk Drennan Law Today
The team at Kirk Drennan Law can help you work through the divorce process and fight for what matters most to you. Let’s talk about your next steps and options. Just call us at 205-953-1424 or contact us online.