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Why not make some financial New Year’s resolutions?

by | Jan 5, 2022 | Finances And Divorce |

If you’re planning to divorce or you’re already divorced, one of the realities that hits home for people is how much more expensive it can be to live divorced as opposed to married. Simply put, you’re going from sharing the expense of maintaining one shared household to managing two. That makes it increasingly difficult to live as you once did — this article from The Penny Hoarder goes into all the extra expenses that come with divorce.

But there’s also a new life that comes with getting divorced that can make taking on extra expenses worth it. It could also move you into a place where you’re making better money decisions than you once did, now that you’re getting sole control of your finances.

A CNBC article that came out Sunday revealed the three money-related resolutions that Americans are most focused on heading into the New Year, and they’re the ones you’d be likely to come up with yourself.

The number one goal is to save more money, the second is to pay down debt, and the third is to spend less money. And, of course, all of these things go hand in hand, starting with some basic financial advice. If you can make a budget and figure out what money’s coming in and where it’s going, you can do a better job of determining what expenses you can cut out and redirect to those money goals you’re setting for yourself.

As the article points out, depending on your financial situation, you might be able to cut out some luxuries like subscriptions — or, though they don’t mention it specifically, the advice about lattes and lunches out you’ve likely heard — and redirect that money to what you need. In some cases, it might require more drastic measures, like moving to less expensive housing or even consulting with a bankruptcy attorney to get out from underneath severe debt.

Another CNBC article published on New Year’s Day warned that, in the end, a lot of people tend to act emotionally when it comes to money, and that can derail plans to spend less and save more. The article advises, before making the sort of gut-reaction choices that could derail your plans, to think about what’s motivating you to make better financial choices.

For people getting divorced, it’s likely rooted around the idea of having a better post-divorce life. When people do decide that divorce is the answer, they’re often looking for quality of life to improve under the new arrangement. Getting there takes a significant time, money, and energy investment, but the motivation comes from the idea that reforming their families will be better in the long run. Some of the reasoning might even have to do with money, as money decisions can and do create conflict for couples.

At the Law Office of Lisa A. Vance, we’ve worked with couples in a wide range of financial situations. For couples who fall into the high-net-worth divorce category, or for couples who have a complicated financial situation, we bring in financial professionals who can help sort valuation and asset allocation concerns. For couples who are just wondering how they’re going to make it, we can steer you to resources, be as creative as you’re willing to go in negotiations, and make sure you’re getting what you’re entitled to — including helping determine whether you’re eligible for spousal support under the Texas Family Code.

With our initial consultation, we can help you determine a path seeking better financial well-being for you and your children, even in the face of the change you’re looking to make.