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Issues to consider going from two incomes to one after divorce

On Behalf of | May 1, 2023 | Divorce |

Your pending divorce will transform your once two-income household into a single-income household. In the future, you will be solely responsible for your financial dealings, and this brings some concerns.

This financial strain makes you wonder whether you can manage matters on your own. You can do so as long as you make certain adjustments, have complete knowledge of the assets already owned, and understand the issues before you.

Housing, health insurance and benefits

Matters that rise to the top when divorce breaks in half a two-income household include:

  • Housing: It may be a necessity to seek more affordable housing, especially if you and your spouse must sell the family home as part of the divorce agreement or you can no longer afford to keep the house.
  • Health insurance: Perhaps your health care coverage was through your spouse’s employer. You must explore other available health care insurance options.
  • Retirement investments: Your spouse likely accumulated a significant retirement investment portfolio through IRAs and 401(k) accounts. Any of these investments built up during your marriage are marital assets to which you are entitled.
  • Other investments: It is not unheard of for account statements to disappear when a divorce starts. Because of this, make sure that you have a general idea of the assets you own. For starters, the list may include retirement accounts, liquid assets in bank and money market accounts, real estate and business interests. Your attorney will help you uncover any hidden assets.

Also, please understand the need to make financial sacrifices. You cannot avoid this as some belt-tightening will be in store for you. Frugality may be a philosophy you must live by for some time. This also will help you in your effort to reduce debt as well.

Guidance and knowledge from an attorney

When you have questions about divorce, turning to a skilled and experienced divorce attorney is a good move. The right attorney will fight for you at every step, providing guidance so you do not have to scramble or feel as if you are on your own. With an attorney’s knowledge and direction, you will secure the marital assets that you deserve, softening any potential financial blows that may develop.