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How to create a financial plan after a divorce

On Behalf of | Jan 23, 2018 | Divorce

Kentucky residents who are ending their marriages have to create a plan that meets multiple financial objectives. At the same that they are funding their divorces, it is also necessary to create a financial plan for life afterwards. Ideally, both parties will review their finances prior to signing off on the divorce settlement. During this review, individuals should get a better picture of their income and expenses as well as any assets that may be retained going forward.

Alimony payments will impact the budgets of those who make them and those who receive them. Alimony used to be taxable as well as deductible, but the new tax law has changed that. It is important to note that alimony payments may cease if a payer stops working or the recipient remarries.

In addition to alimony, an individual may be able to receive money to pay for job training or for a formal education. Going back to work could make it easier to make ends meet as well as provide for a person’s health care needs after a divorce. Reentering the workforce may also provide a confidence boost that can help a person after ending a marriage.

Individuals may benefit from planning for their future before starting the divorce process. Talking with an attorney may help an individual learn more about what type of information may be helpful when negotiating a divorce settlement. In most cases, tax returns, credit card statements and pay stubs may establish what a person may need or be entitled to from a financial standpoint after a marriage ends.