Posted on: 19 October 2015
One problem divorces can cause is financial stress after a couple splits up and moves into two separate households. If you are currently going through a divorce and are unsure how to handle your finances, you might benefit by hiring a certified financial planner (CFP). A CFP can help you make the right decisions for your finances, and this could help you avoid financial problems in your future. Here are two ways this can help you financially after your divorce.
Create a good budget
When you and your spouse split up, you will end up having to live alone with your income only. Because of this, couples who split are often forced to downsize to smaller homes that are more affordable for one-income families. This is one thing your CFP will discuss with you during your divorce.
In addition, your CFP will help you look over your entire budget. This is usually the first step a CFP will take when providing advice and a strategy for a person that will soon be divorced. By looking over your budget, your CFP will be able to help you decide how much you will be able to afford for a house. He or she will also help you determine whether or not you should keep your car or get a different one.
Determine the best strategy for tax implications
The second key thing a CFP will help you with during and after your divorce is making wise decisions that will help you avoid tax implications. For example, a CFP can help you decide whether to rent or buy a house. When you rent, you can write off the rental payments on your state taxes. When you own, you can write off the interest you pay on the home loan for your federal taxes. If you are not sure which option is best for your situation, a CFP can help you decide.
A CFP can also help you determine what to do with the assets you have, and the advice he or she gives will often be based on the tax implications of each option. In addition, you will receive advice about how to pay off the debts you have, as well as advice about how you can develop a savings plan for retirement.
Every divorce is different, but it is important for you to make wise financial decisions after your divorce is through. To learn more about this, contact a CFP like one from Global Wealth Consultants LLC in your area today.Share