Financial Fitness and Your Divorce

Here are some tips for getting "financially fit" after divorce.

Make a Budget

When the divorce is final, your finances will probably change. Assets are divided in half, but so are the debts. With a budget, you can clearly see where your income is coming from, how much you can expect each month, and where you are in regard to the bills. Take a hard look at the budget. If you aren't taking in enough money, perhaps you'll need another job. If there are too many bills, perhaps you'll have to cut back on spending and even what you consider essentials, like cable television, the gym, new holiday outfits, and vacations.

Consider State and County Aid

When you are a newly single parent, you may be on shaky ground when it comes time to take on your share of the support of your children. Getting help from state and county agencies is a good way to make sure there is enough food on the table, a roof over your heads, and medical care when the kids need it. The court may have ordered child support payments from your ex-spouse, but getting back on your feet can be overwhelming even with child support. 

If you're the one paying child support, you may be struggling with supporting two households on one budget. You may also be eligible for state and county services.

Keep Track of Child Support Payments

This may seem obvious, but there are people who lose track of their child support payments, especially if they are automatically deposited into an account. Stay on top of those payments so you always have an accurate picture of your financial standings. If the payments fall behind, it could cause you late fees and other charges when you can't pay your power, water, mortgage, or rent.

Nebraska offers a telephone-based system to track child support payments and disbursements (for both the spouse paying child support and the one receiving it). Call 1-877-631-9973. For more information on the Voice Response System, check out this page.

Insurance and Medical Expenses

One parent or the other may have the responsibility to carry the children on their health insurance policy. You may want to sign on for COBRA, the extension of benefits, under your spouse's insurance. Laws regarding insurance policies are very precise and time-sensitive, so you need to be on top of this. If insurance is unavailable, you will have to plan for medical expenses along with your spouse. These expenses may or may not have been part of the child support order. But, either way, things come up that even a court order can't predict. This is where an amiable relationship with your ex-spouse is helpful. You will have to work out payment agreements together and without rancor for the sake of the children.

Alimony

This is a temporary arrangement whereby the court has ordered one spouse to pay the other spouse a certain amount of money each month to help ease a financial burden. Be sure to include this amount in your budget; as income for the receiving spouse or as expense for the paying spouse. The receiving spouse should be especially careful. Because alimony is a temporary payment, it is unwise to make long-term investments using the income received from alimony. Don't buy something that will take 10 years to pay off if your alimony is ordered for three years. Instead, make your plans during this time to learn the tools necessary to earn more money so you won't feel the pinch when the alimony ends.