It takes work to return to regular life after the decision to part ways with someone, as divorce is as much an emotional as a legal process. Changes in responsibilities are necessary due to practical, emotional, financial, parental, and legal issues.
Financial stability may take years to get back to ease for individuals if post-divorce financial planning is not taken care of. Hence, solid and foolproof financial planning is a priority to prevent financial challenges for a secure future.
How do I financially bounce back after divorce?
The stress of managing domestic expenses, travel, health care, and other unforeseen ones is lowered by the pooled and shared income of the two couples. But now, as the scenario is different, with the total income, everything needs to be managed.
Bouncing back financially after divorce could take time but it is not something that cannot be achieved. While taking this brave move, one can also ensure a secure future after divorce by putting a few financial planning tips into practice.
Some of the Financial planning tips are:
1. Accept the present scenario of your financial position
The financial budget needs to be worked upon after separation. If the expenses, needs and wants of spending were dealt with jointly earlier by both spouses, then now a complete and detailed budget should be made again taking into account all the bills, commitments, and expenses and accepting the fact that there could be a drop in the spending habits than previously.
2. Ascertain if you need financial settlement after divorce
It is a matter of personal opinion and choice for each person to get alimony from their former spouse. One can determine their financial situation concerning obligations, assets, and debts (if any) using the previously created budget plan, and can take a call on whether to file for alimony or not.
3. Update Legal Documents
One of the most important steps towards making financial planning easier after a divorce is updating all of the legal documentation. This is crucial to reduce the possibility of future financial obligation disputes arising between partners. To do this, delete the name of the ex-spouse from any joint accounts. Update or change the beneficiary names in financial documents such as demat accounts, insurance policies, real estate, and others. Minutely Consider and update all documents for a peaceful future.
4. Rework on being independent and financially sound
a) Examine your current situation (either employed, homemaker, homepreneur, or entrepreneur) and determine your income-generating and financial objectives.
b)With this in mind, consider and plan if you want to reduce your expenses, such as those associated with your home. Whether you want to rent the house, earn a living, or save aside some additional cash, make sure you plan it well.
c) Alternatively, you may purchase a smaller home where the costs associated with maintenance of the building and other expenses would be lower, or you could think about going with the same approach. This decision can be easily worked on by counting on people who rely on you for their livelihood.
d) Continue to learn and upskill to stay updated with technology and the world, as well as to improve your work prospects. If your post-divorce period requires you to pick up new talents or hone your existing ones, you should consider and strive towards becoming financially stable and independent.
5. Plan an emergency fund for any unforeseen situation
Though how smart an individual is, unforeseen situations cannot be overlooked and ignored. Unexpected expenses like health, travel, job cuts, and recession can flicker your daily or monthly budget. During these times, the expenses remain the same or even more but the income declines. Thus, Building a slow and steady emergency fund with long- and short-term savings can help in difficult times. One should consider at least a minimum of a 3-month reserve of monthly expenses for emergencies for better financial planning.
6. Think about investment options
Determine which kind of investing is most suitable for you. A small portion of your income may be allocated to several investment choices such as rental income, SIPs, recurring deposits, and liquid assets, taking into account your personal property, liquid assets, pension benefits, and investment interests. This will help you not only in the present but also in a complex stage of life which is retirement. Retirement planning is crucial as when you start planning for your future early on, you will have enough time to overcome any unexpected obstacles and live comfortably while you prepare for a secure future.
7. Seek legal and professional help
Making strategic future plans by working independently and utilising your networks is a wise choice. A financial and legal adviser, however, is the best person to assist you resolve the issue and create better future plans, given the many changes to laws and regulations. Because of this, financial advisors are best qualified to point us accurately when it comes to your legal rights and responsibilities.
A few more information bearing questions in mind to assist clarify the guidance on financial planning post-divorce
- Irrespective of gender can both husband and wife ask for alimony?
Both spouses are entitled to make an alimony claim. It will be granted to the spouse in need of financial assistance after taking into account all of the information provided.
- How much should a husband or wife demand in alimony or maintenance and what are the criteria of the court?
There is no set method for determining the amount of maintenance. The applicant’s spouse’s interests should be weighed against the spouse’s financial situation. However, the Court established a few criteria like the parties’ position, the applicant’s needs, the respondent’s income and assets, the claimant’s liabilities and financial obligations, the parties’ ages and job status, their living arrangements, the upkeep of their little children, and any illnesses or disabilities.
- How long does it take to get alimony from your ex-spouse?
The date of the application, the date of the court order, and the date the respondent received the notice are a few of the metrics that are worked upon to get alimony from the partner. After examining each of these deadlines, the Court considered that it would be in the applicant’s best interest to grant maintenance beginning on the day of application filing.
- What if I change my mind after divorce?
After filing the divorce, before final judgment is passed, parties can withdraw their consent and petition at any time. The court favours saving the marriages. This is the very reason for having a 6 months cooling period in mutual divorce cases, wherein parties have time to rethink or revisit their decision. After the final judgement is passed and if the parties want to get back together, they can remarry each other.
- How about children? Which regulations apply to custody? Even after the divorce, will my child be able to legally get money from their ex-spouse?
The duty of both parents is to raise their children. If the wife is granted custody, she may also request child support, and vice versa. It will be included in the court order or settlement agreement. In case you have not asked for any maintenance during the divorce proceedings, and the order has not given any child support, then you can apply again to the court through a new case or appeal of the order.
Conclusion
After a divorce, careful financial planning easily resolves any obstacles or issues brought on by a lack of funds. This is very essential as having financial independence allows you to live your life as you like, follow your own path, and enjoy your freedom. All you need for this is courage and preparation on your part, and following well-thought-out advice from a legal counsel that will help you sail through the storm more skillfully.
Advocate Kiran S R – A highly skilled, passionate, dedicated advocate, with vast wealth of knowledge, professionalism, ethical approach and expert skills. One of the sharpest legal mindset brings the best principles of legal practice to the forefront. A qualified Engineer turned Advocate. His passion, dedication and vision to help and assist his clients achieve the best results is his driving force.
