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Financial recovery after divorce

On Behalf of | Jan 23, 2018 | Divorce

Many recently divorced people living in Maryland struggle financially afterwards. This is due to a number of factors, including loss of assets and the need to set up a new household. While it is possible to recover, many individuals find that they have to take aggressive action to do so.

People have an opportunity to take a good look at their finances and current circumstances and make, when necessary, some radical changes. After all, while divorce does represent the end of a marriage, it can also represent a new beginning. People should assess what types of assets they do currently have, and these are not necessarily always material or financial. Knowing and cultivating a secure support network of family and friends is often crucial to maintaining a positive mental attitude.

After a divorce, the parties are responsible for reestablishing their finances. This means opening new bank and credit card accounts. In addition, it may also be necessary to start new investment accounts as well. Other things to consider include developing a budget and spending plan. It’s easy to fall into bad spending habits when money is plentiful. After a divorce, finances are often tight, forcing individuals to cut back in some areas while also developing new habits. Recently divorced people may benefit from taking a class in personal finance or speaking to a personal financial adviser who can assist them in reaching their goals.

A person who is considering a divorce can also benefit from speaking with an experienced family law attorney. Finances play a role in many divorce legal issues, including property division and alimony, and an attorney will take this into account when negotiating a settlement agreement.

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