Everything changes after divorce, not least of which are your finances. Support orders, tax implications and a new living arrangement can mean you have to make a lot of changes in your spending habits. The biggest changes you can expect after divorce are either paying or receiving support and having a different asset profile.
You will also have to set up a new household, which is especially important when minor children are still living at home. They will need a comfortable house to spend their residential time in. You will also have to cover transportation costs associated with transferring your child to their other parent. The division of these costs can be agreed upon in the parenting plan. You will also have a different tax filing status and may or may not be able to claim your child as a dependent.
You can anticipate these changes and plan for them by making sure your parenting plan, child support order and spousal support order are worded in a way that looks our for your financial interests going forward. While basic child support is calculated with a standard formula, the amount can deviate from this calculation if there are qualifying extra expenses involved. These extra expenses can include childcare in order for a caregiver to work or seek work opportunities; uninsured medical expenses and expenses for your child to attend private school. These extra expenses won’t be added to the basic child support in every case.
Contact an experienced family law attorney if you wish to add these expenses to your basic child support amount. A skilled attorney can help you navigate the process of requesting extra child support. Accounting for these extra expenses at the time child support is ordered can help you make a smoother financial transition post-divorce.
Similarly, spouses receiving spousal support are expected to find work, if they are able. The goal of spousal support is to give the spouse who is receiving the support every chance at becoming self-supporting. Similarly, those paying spousal or child support will have to work the support into their budget.
Support payments cannot stop unless you can demonstrate that there has been a significant change in circumstances warranting a different amount. Finally, the tax implications of divorce can significantly affect your finances post-divorce. Try to plan for that while working out your final divorce documents. A dependent claim for your child can be transferred to either parent and spousal support can be ordered in a way that is most advantageous to your taxes going forward.
Speak with a family law attorney with experience in complex divorce financials to ensure you are doing all you can to plan for and account for financial changes post-divorce.
Are you in the Los Angeles or Beverley Hills area and have questions about protecting your financial interests during divorce? If you are beginning the divorce process and want to take the right steps, Certified Family Law Specialist Mark H. Karney can provide extensive experience handling financial issues in divorce. Serving Los Angeles County, attorney Mark H. Karney can provide expert counsel for all your family law needs. Call our office at 310-622-9434 or email us at intake@cfli.com to schedule a free consultation.