For many Maryland residents, the process of dividing marital wealth is a primary focus during a divorce. Unfortunately, too few spouses give proper consideration to how they can preserve the wealth obtained through the property division process. Having a plan in place to regain financial stability following a divorce without tapping into one’s financial foundation is essential. The following tips can help individuals learn to regain financial stability in the months and years that follow a Maryland divorce.
Some spouses will emerge from divorce in a very strong financial position. For others, however, achieving financial stability can be a tenuous process. Taking a proactive approach to managing household finances is a critical component of success, and there are two primary ways that such stability is achieved: by decreasing expenses and increasing income.
Decreasing household expenses is often the easier of these two tasks. Individuals can choose a less expensive housing option, make cuts to discretionary spending and engage in concerted efforts to spend less in all areas. Don’t be afraid to get creative in this process, and look for ways to achieve the same goal with less expense. That may mean altering the family’s annual beach vacation to include another family, and sharing the costs.
Increasing income can be considerably more challenging, especially for parents. If it is not possible to take on more hours or look for a higher paying job, spouses must once again get creative. Many people have achieve success by starting a side business. Others have padded their savings accounts by selling off luxury items that are no longer necessary.
Through a combination of reducing expenses and increasing income, Maryland residents can achieve financial stability. That can reduce the need to tap into the assets gained through the property division process, preserving that wealth for future needs. Spouses who find the active management of their financial lives to be a daunting prospect should remember that the end of a marriage also marks the beginning of a new phase of life, one that can be constructed according to each individual’s personal goals and aspirations.
Source: USA Today, “Divorce wiped me out financially. Here’s how I bounced back.“, Tamara Holmes, May 25, 2017