- Avoiding the long-term picture with alimony. After the dissolution of a marriage, you may very well be mentally drained and vulnerable. It can be very tempting to simply collect and spend your alimony, treating yourself after a long ordeal. But experts agree this can be one of the biggest mistakes you make following your divorce. It is important to focus on saving and investing in your future.
- Planning without sound advice. Advice comes in many forms, whether from a financial planner or even a therapist. Asking for help can be uncomfortable for some, but it is one of the most valuable steps you can take. A therapist can help you deal with the stress of your divorce as well as help you realize your individual potential as you look forward to and plan for the rest of your life. A good financial planner will help you with the logistics of that, from budgeting for vacations to planning for your retirement.
- Forgoing alimony for the house. Oftentimes, a spouse opts to keep the marital house instead of alimony payments. In some cases, based on the equity in the house, this can seem like a more valuable choice, but often the lack of liquid income negates whatever value the house has. If you received ownership of the house as well as cash, it is a good idea to keep that cash liquid rather than paying it into the property, as you will need liquid assets for emergencies and repairs. Many times the best option is to sell the home and downsize, which will free up more cash for saving or investing.
- Being a spender instead of a saver. For many people, their ex was the one in the marriage who focused on saving, but it is crucial for the sake of your future that you get yourself into a savings mindset. It can be tempting when receiving alimony to utilize all of it for living expenses, but it would be a mistake not to set aside at least ten percent for the security of your future.
- Not adjusting your spending habits. Following your divorce, most likely your income and expenses will have changed from what they were prior to the divorce. Thus, it makes sense that your spending will need to be adjusted as well. Plan out a budget and stick to it, even if it means giving up certain luxuries you had indulged in pre-divorce. Be sure to incorporate saving into your budget plan. While this may be difficult in the short term, the long term benefits will be very valuable.
Towson Divorce Lawyers at Huesman, Jones & Miles, LLC Represent Clients Throughout the Entire Divorce Process
If you are preparing to initiate or are facing a divorce, the compassionate Towson divorce lawyers at Huesman, Jones & Miles, LLC will be by your side through every step, advocating for your rights and your financial wellbeing. We are experienced with all Maryland family law matters including divorce, child custody, child support, parenting plans, grandparents’ rights and prenuptial agreements. We serve clients throughout Baltimore County, Carroll County, Harford County and Howard County with offices conveniently located in Towson, East Pikesville and Hunt Valley, Maryland. For a consultation, call us today at 443-589-0150 or contact us online.