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Michael A. Johnson
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Making financial preparations for life after divorce

| May 25, 2020 | Divorce |

Many individuals in Arizona and across the nation may feel that taking every possible measure to protect their financial futures is an essential component of life. When facing a divorce, a person may wish to gain insight on what to expect from and how best to prepare for what comes next. While preparing for this aspect of the process may be vital, creating a strategy for life after divorce could also be integral to opening a new chapter in life with financial piece of mind.

One of the first topics to address when creating a plan for life after divorce could include evaluating one’s income and future expenses and developing a budget. A post-divorce budget could play a vital role in helping a person make the transition to a new life, even if the need is only temporary. Should financial challenges arise, understanding the risks of dipping into retirement funds for aid could also help prevent a potentially devastating outcome.

It may also be in one’s best interests to close joint banking and credit accounts and open new accounts, as such a decision could be vital to protecting one’s finances. Keeping a detailed record of current and previous finances may also be beneficial in various ways. It might also be beneficial to gain insight on the impact one’s change in life circumstances will have during tax season, as the situation may alter one’s liabilities or eligibility for reductions.

Finding ways to focus on the future during a stressful and emotional process such as divorce can be challenging, but it could also be imperative. Those facing a similar scenario could find it helpful to speak with a family law attorney early in the process for guidance on how best to approach the situation. An attorney in Arizona can work with a client in developing a strategy to seek the most favorable outcome achievable concerning his or her future during divorce proceedings.

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