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Financial independence after a divorce

On Behalf of | Aug 1, 2022 | Divorce

Life after divorce brings with it many considerations. From a financial perspective, newly divorced persons likely don’t want to struggle, and many would prefer to embrace financial independence. How both parties engage in settlement negotiations may impact their economic well-being in Texas for years to come.

Financial independence after divorce

Financial independence does not necessarily involve amassing or acquiring enough wealth never to work again. Such an outcome might never be an option for most people, but reducing debt and living within one’s means is possible. A reasonable divorce settlement could provide both parties with the assets necessary to achieve such goals.

Proper budgeting could also help a divorcee achieve some level of financial independence. Maybe the family home is too costly for one person to support on a single income. Selling the house and dividing the proceeds may be a better plan. The spouses could procure less expensive living arrangements and make wise retirement-based investments with the remaining funds.

Each spouse’s financial situation is different, but saving money and cutting expenses would likely help. Maximizing one’s income has benefits, and exploring job training or a career change capable of boosting earnings might be worthwhile. Working a second job in the gig economy may add some extra funds towards financial independence goals.

Focusing on the settlement

Rushing to reach a divorce settlement might not be in either spouse’s best interests. Reviewing individual budgets and expenditures could help one spouse work towards receiving an appropriate amount of alimony. Expense details would likely play a vital role when asking for child support from the non-custodial parent.

Working with a financial counselor before, during and after divorce proceedings may have some value. Seeking assistance on matters related to fiscal independence might help someone stay on the proper financial path.