For couples in North Carolina who divorce, reaching financial independence afterward is an important goal. With the right preparation, a person preparing for a divorce can reorganize their finances to meet their needs and reach their goals independently.
Finances and divorce
When a couple is married, their combined finances mean that they can split a lot of expenses while both bringing in an income. For example, they will have shared housing costs. After divorce, they each need to pay the full cost of their own housing without the benefit of a second person’s income. This is an important time to take stock of the new financial picture and evaluate all income and expenses in light of the post-divorce environment. Often, it is not as overwhelming as it initially seems, but it does require detailed awareness of all important flows and stocks of money.
Take care of the basics and necessities first, and then, think about more abstract financial matters. For example, after divorce, each person needs to contribute to their own retirement savings and cover their own health insurance. This might require a reassessment of spending habits or a search for a higher-paying job. The division of child custody and child care expenses will also be important for budgeting if there were children prior to the divorce young enough to still need parental care.
Divorce can have an impact on finances and change the way that people set up their budgets. However, it does not mean that there needs to be a major decline in lifestyle, and some people wind up better off after a divorce and a rebalancing.