The Truth About Your Finances After Divorce!

Piggy Bank
After divorce, it’s pretty common for everyone’s standard of living to go down somewhat, because your finances have to stretch to cover more.

For people who are unhappy in their marriages, when they think about getting divorced, they tend to focus on the freedom they’ll have when it’s all over. And that makes sense. After all, if you’re miserable and you’re convinced your spouse is the source of that misery, then it makes sense to focus on the hope that eventually you’ll be free to start over and find happiness in the future. 

The problem, however, with that mindset, is that it can get a little myopic at times. People focus so much on getting out and moving on, they forget to think about all the other ways that divorce will affect their future, and their finances. And those things, boring or unpleasant as they may be, are also going to have an impact on your future freedom and happiness, whether you like it or not.

Divorce changes your finances, and that matters.

For a stay home mom who didn’t work, she likely had to rely on her husband for income. He paid the bills, and any money she spent came from his paycheck. But what about after divorce? Chances are, that mom is going to receive some child support and alimony from her ex after the divorce, but it won’t be as much as she was accustomed to having. And now it has to stretch to pay bills as well as buy groceries, cover incidentals, and take care of all those little things the kids need. Suddenly her budget is much smaller.

This may sound like sexism, but it certainly isn’t meant to be. It’s simply a reflection of the facts as we encounter them. We’ve helped hundreds of Michigan folks with their divorces, and the reality is that there are more stay-at-home moms out there than stay-at-home dads. Which means there are more divorced women relying on their exes to pay alimony in order to help them keep their heads above water.

Going from two incomes to one means adjusting your lifestyle.

Even in cases where both spouses worked, sharing the bills between two people who earned an income can mean more disposable income for things like vacations, shopping, and other non-essentials. When that couple parts ways, suddenly they’re each required to cover 100% of the bills on only one income, and that changes how much money is left over for everything else.

If this sounds like we’re trying to tell you to not get divorced in order to have more cash, that isn’t the case at all. But what we do want people to do, is realize that divorce impacts more than just your emotional well being. When it’s all over and the dust has settled, you’re going to have to change the way you budget, and the way you live life. You’re probably going to have less money at your disposal. So if times are really tight you may have to get a job (if you didn’t already have one), or maybe even get a second one, if one isn’t cutting it. 

Being continually strapped for cash is emotionally exhausting

Living paycheck to paycheck is hard. Never having quite enough for everything you need, and constantly having to juggle all the bills and household expenses in order to stay afloat gets old really fast. (Just ask anyone who has been living below the poverty line for years and they’ll tell you – it’s the pits!) But there are ways to make the whole thing a little easier on yourself. 

So if you’re planning a divorce and you know you’re going to need help preparing for your best future, call The Kronzek Firm at 866 766 5245. Our experienced and helpful family law attorneys can help you plan for every financial eventuality, and can refer you to experts who can help you with your finances as you move into your new life.