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Three Financial Blunders To Avoid After Divorce

Once your divorce is final and you are ready to establish yourself as a single force to be reckoned with, one of the most important things to do is make sure your finances are in order. Being able to support yourself and to make decisions about your financial future without a spouse can be hard, but the reward is well worth the effort. A certain sense of accomplishment comes with being able to invest wisely, put something away for a rainy day, and help your kids as they move from high school to college and beyond. In order to do this it is important to have an awareness of your changed financial picture now that you are single, and it is also helps to know what money traps to avoid.

Three financial blunders to avoid when you are newly single include:

  • Avoid spending more than you have. This seems simple enough, but in practice is a very hard thing for most people. This is true when there are two incomes to rely on for paying the monthly bills and you might find yourself overspending simply out of habit. Try to remember that you alone are responsible for your financial health (especially if you were not awarded spousal support or it has come to an end) and make the necessary adjustments to your lifestyle. Downsizing your home, opting for an older model car, or taking your lunch to work rather than eating out are all good ways to save money when you are single.
  • Failing to review your budget and make the changes needed to take into account your status as a one income household. When you get divorced it is a good idea to take stock of what you have and what you need. Doing so will allow you to identify areas where you can cut back and save.
  • Allowing your emotions to take over and overwhelm you is also a mistake. We understand divorce is hard, but when you come to terms with the decision it will be easier to think rationally about your future. This includes coming up with a plan for your money that makes sense and is within your budget.

Our goal is to reach solutions in your case that allow you a fresh start, and also give you the chance to change. When necessary we suggest enlisting the help of a qualified financial planner, so you can be sure to start your new life off on the right foot.

For more information about divorce and what it means for your finances, call us today. Let us put our experience to work for you. Call The Sampair Group in Phoenix and the West Valley today to schedule your appointment.

Three Financial Blunders To Avoid After Divorce

Once your divorce is final and you are ready to establish yourself as a single force to be reckoned with, one of the most important things to do is make sure your finances are in order. Being able to support yourself and to make decisions about your financial future without a spouse can be hard, but the reward is well worth the effort. A certain sense of accomplishment comes with being able to invest wisely, put something away for a rainy day, and help your kids as they move from high school to college and beyond. In order to do this it is important to have an awareness of your changed financial picture now that you are single, and it is also helps to know what money traps to avoid.

Three financial blunders to avoid when you are newly single include:

  • Avoid spending more than you have. This seems simple enough, but in practice is a very hard thing for most people. This is true when there are two incomes to rely on for paying the monthly bills and you might find yourself overspending simply out of habit. Try to remember that you alone are responsible for your financial health (especially if you were not awarded spousal support or it has come to an end) and make the necessary adjustments to your lifestyle. Downsizing your home, opting for an older model car, or taking your lunch to work rather than eating out are all good ways to save money when you are single.
  • Failing to review your budget and make the changes needed to take into account your status as a one income household. When you get divorced it is a good idea to take stock of what you have and what you need. Doing so will allow you to identify areas where you can cut back and save.
  • Allowing your emotions to take over and overwhelm you is also a mistake. We understand divorce is hard, but when you come to terms with the decision it will be easier to think rationally about your future. This includes coming up with a plan for your money that makes sense and is within your budget.

Our goal is to reach solutions in your case that allow you a fresh start, and also give you the chance to change. When necessary we suggest enlisting the help of a qualified financial planner, so you can be sure to start your new life off on the right foot.

For more information about divorce and what it means for your finances, call us today. Let us put our experience to work for you. Call The Sampair Group in Phoenix and the West Valley today to schedule your appointment.

Protect Your Financial Future After Divorce

Divorce is one of the most stressful and emotional transitions you can face, and can often come with financial surprises. It is important to prepare for your financial future so the burden does not haunt you until retirement. Here are some ways to protect your financial future after divorce:

Financially preparing for the divorce and separation as soon as possible is the best way to go. Make copies of important documents such as pay stubs, tax returns, financial account statements, life insurance policies and loan documents and agreements, and begin organizing all of this information. Start tackling your finances during the divorce process, not after. Get separate bank accounts and credit cards, and be sure to cancel all joint credit cards and accounts. This way you can establish your own credit history and will not be held responsible is your ex-spouse fails to pay any credit card bills. As you negotiate the divorce, be sure that the mortgage, utilities and other bills get paid on time so you are not penalized.

Create a new budget for yourself for after the divorce. You will have less monthly income to use in your current lifestyle, so decide what kind of changes you need to make in order to better afford the single life. Consider expenses such as household, automobile, children, insurance, and other debts. Even if it’s in the divorce agreement, you can’t always count on your ex-spouse to pay the amount they are supposed to, or pay on time, so it’s important to know where you stand financially. Building an emergency fund from any cash you receive from the divorce is a great way to protect yourself from financial surprises or emergencies. This fund should equal 3-6 months of your living expenses for enough cushion during financial hardships. Having an emergency fund will also prevent you from racking up credit card debt.

Consult with a Phoenix Divorce Lawyer at The Sampair Group to discuss protecting your real assets such as cars, real estate and personal property. It is rare that couples in a divorce get a fair settlement when it comes to assets, so you should seek to resolve the splitting up of assets as fair as possible. Seeking outside counsel is also important when it comes to medical insurance. It is very important to discuss coverage for you, and any children involved, after the divorce. As for social security, you are entitled to 50% of your spouse’s benefits if you were married for at least 10 years if that amount is greater than your own benefits. This applies even if your ex remarries, but not if you do.

Be sure that you revisit and evaluate your beneficiaries. If you do not remove your former spouse as your primary beneficiary on retirement and investment accounts, they will receive all of that money in the even of your death. These policies must be changed themselves, as just making changes on your will does not protect these funds.

How Divorce Can Impact Your Finances

More than just where you live changes when you file for divorce. Along with establishing two homes for your children and a fair division of property, you also have to figure out a new financial plan for your future. When a couple is married, their finances are usually shared, with expenses for daily living coming out of a joint account. At divorce, this all changes. Financial independence is a big part of divorce, but it goes beyond just standing on your own two feet. There are significant issues that must be addressed regarding your financial plan, and if something gets overlooked it can be difficult to make a change later.

Tips on things you can do to lessen the financial blow divorce deals, take a look at the following suggestions:

  • If it makes more sense to sell an asset you were awarded in the divorce, so that you can avoid using credit to make ends meet, do so now rather than waiting until it is a necessity. The last thing you want after a divorce is to face financial hardship.
  • Be sure to make changes to important financial and estate planning documents, such as bank accounts and your will or trust.
  • If you have a 401(k) or other retirement account, make sure your divorce case makes provision for removing your spouse as the beneficiary. You should take the same steps regarding your life insurance policy.

In order to make sure you are taken care of financially, don’t settle for less than you deserve in your divorce. While the Court will make an award that is fair, you do have the right to advocate  for your interests. Our team of family law attorneys has experience negotiating fair divorce terms, and can also argue your position to the Court. When you are aware of your rights and responsibilities, adjusting to a new financial position is much less painful.  This includes knowing what to expect by way of child support and/or alimony, whether you are on the receiving end or are the one making the payments. Call us today to learn more.

If you have questions about divorce and money, consult a qualified legal professional. Let us put our experience to work for you. Call The Sampair Group in Phoenix and the West Valley today to schedule your appointment.

Five Things To Consider About Money And Marriage

They say money is the root of nearly every problem in a marriage. When money is tight, tensions are high and people are more likely to be on edge. This mix of circumstances can lead to more fights, resentment, and ultimately divorce. This is why experts agree that before you even walk down that aisle, you have a heart to heart with your fiancée about money. While it can be a difficult subject to broach, if you are not on the same page financially as your spouse, you could be in for a lot of heartache, not to mention headaches, down the road.

Forbes sets forth some important things for a couple to think about financially when getting married, and these five things are something everyone should consider:

  • Placing a value on things rather than on the relationship will spell certain disaster. When one of the parties to the marriage puts more stock in material things than in the marriage itself, it can leave the other person feeling undervalued and taken for granted. If you are able to avoid falling into the trap of “keeping up with the Jones”, your marriage will have a higher success rate.
  • Failing to share the same financial goals is another way marriages fail. When one spouse overspends, or has a different financial philosophy, the relationship can flounder.
  • Being inflexible to your role within the marriage, as it relates to finances, can also spell doom. Gone are the days where moms stay home with the kids while dad works. If you are unable to adapt to a shift in traditional roles, your marriage may suffer.
  • If your style of spending differs too greatly from your spouse’s style, you can easily fall into the trap of hiding purchases or downplaying your spending. This is not only a bad money habit, but can lead to bigger problems such as lack of trust.
  • Believing things will just “work out” without effort. If you are in financial distress, you have to be realistic about your situation and work together with your spouse as a team to reach solutions. Failure to do so might mean failure of your marriage.

Of course there are other reasons besides money that cause marriages to dissolve. If you are facing divorce, call us for help. We will make sure your interests are protected, and work with you for results that are satisfactory.

For more information about divorce, call us today. Let us put our experience to work for you. Call The Sampair Group in Phoenix and the West Valley today to schedule your appointment.

 

 

What Debts Will I Have To Pay After The Divorce Is Over?

Dividing up assets and figuring out who pays what during a divorce is one of the most hotly contested parts to nearly every case. No one wants to come out of a divorce paying for debts racked up by their ex-spouse, or being left with too little assets to make a new life. And, if children are involved, the party with custody will want to make certain there is enough child support to take care of the kids and give them the life they deserve. These circumstances make it crucial to have a clearly worded decree, that sets forth who pays what and which spouse gets what pieces of property.

When thinking of how to budget for your finances after divorce, taking into consideration the assets on hand is important but it is also necessary to know what debts the Court expects you to keep paying. Examples of what debts must continue to be paid after the divorce is over include:

  • The debts for which the Court ordered you make payments. If you were assigned the responsibility to make credit card or car payments in the divorce decree, failing to do so can result in contempt of court charges being filed against you.
  • The mortgage payment will need to be paid after the divorce and the party that remains in the home is usually the one responsible for the payments. This is not always the case though, and if you are being asked to make these payments you will want to be sure the Court has all the information it needs to make the determination as to who pays. This might include your financial and banking account data as well as information on other debts for which you are responsible. Making your case takes careful planning, and persuasive argument.
  • Medical, dental, and other healthcare costs for the kids will still be due after the divorce. It is common for one party to be required to carry insurance for dependents, and then the parties split the costs of things like co-pays and prescriptions. For more in depth medical needs, a more thorough analysis of your particular circumstances is required.

Part of getting divorced is adjusting to a new life, as a single person. This includes being able to stand on your own two feet financially, which is why it is so important to fight for debt distribution that is not overly burdensome. Call our office for more information on what your post-divorce financial picture involves.

For more information about divorce and finances, call us today. Let us put our experience to work for you. Call The Sampair Group in Phoenix and the West Valley today to schedule your appointment.

The Top Two Tips For Financial Success After Divorce

The emotional fallout from getting divorced varies from person to person. The financial consequences are also different for every case. Regardless of your circumstances though, these two issues are the most complex for every case and how well you plan for your future depends on how carefully you examine your needs. With finances there are steps you can take to ensure your financial freedom after the divorce, such as by aggressively seeking a distribution of property that is fair and by making sure certain things are done that will impact you later on in life. Orders regarding alimony are the most obvious way in which your finances are affected when you get divorced, but there are also other areas of your life that require examination.

Other practical advice for how to budget and how to manage your money after divorce include looking at the following top two tips for financial success after divorce:

● Changing the beneficiary on your life insurance, or other investment accounts that contain beneficiary designations. A popular choice is to change that designation from your spouse to your children.

● Removing any gifts or bequests in your will or other estate planning documents (such as a trust) made to your spouse.

Your divorce decree will set forth the rights and responsibilities of the parties after the case ends. Who gets the house, where the kids live, and how debt is divided. Making sure these terms are followed helps keep your credit clear and helps you to reach solid financial footing when your case is over. When issues arise after the divorce, you have options to make sure your finances are protected. Seeking modifications of the decree or holding your ex in contempt are some of the ways you can enforce the terms and protect your rights. Your financial independence depend on the choices you make, and we are here to help you make informed and well thought out decisions.

For more information about planning for your financial future after divorce, call us today. Let us put our experience to work for you. Call the Sampair Group in Phoenix and the West Valley today to schedule your appointment.

The Top Two Tips For Financial Success After Divorce

The emotional fallout from getting divorced varies from person to person. The financial consequences are also different for every case. Regardless of your circumstances though, these two issues are the most complex for every case and how well you plan for your future depends on how carefully you examine your needs. With finances there are steps you can take to ensure your financial freedom after the divorce, such as by aggressively seeking a distribution of property that is fair and by making sure certain things are done that will impact you later on in life. Orders regarding alimony are the most obvious way in which your finances are affected when you get divorced, but there are also other areas of your life that require examination.

Other practical advice for how to budget and how to manage your money after divorce include looking at the following top two tips for financial success after divorce:

● Changing the beneficiary on your life insurance, or other investment accounts that contain beneficiary designations. A popular choice is to change that designation from your spouse to your children.

● Removing any gifts or bequests in your will or other estate planning documents (such as a trust) made to your spouse.

Your divorce decree will set forth the rights and responsibilities of the parties after the case ends. Who gets the house, where the kids live, and how debt is divided. Making sure these terms are followed helps keep your credit clear and helps you to reach solid financial footing when your case is over. When issues arise after the divorce, you have options to make sure your finances are protected. Seeking modifications of the decree or holding your ex in contempt are some of the ways you can enforce the terms and protect your rights. Your financial independence depend on the choices you make, and we are here to help you make informed and well thought out decisions.

For more information about planning for your financial future after divorce, call us today. Let us put our experience to work for you. Call the Sampair Group in Phoenix and the West Valley today to schedule your appointment.

Questions from AVVO: Medical Coverage for the Children

Glendale, Arizona divorce attorneyQuestion

My ex is court ordered to provide medical coverage for the children yet their spouse is providing the coverage. I am to pay 34%, my ex is to pay 66% of both unreimbursed medical and travel cost. They provided me copies of medical bills without any proof of payment made, they have a payment plan with the companies, for a certain amount each month (I checked). I have asked my ex three times to provide me copies of any and all payments they have made towards the bills with no results. Would it be considered a gift if I was to pay the 34% medical expenses to my ex if it was through their spouses insurance, and is it also considered a gift since it is the spouse who is technically providing the actual medical insurance?

Patrick’s Answer

Your ex’s spouse providing health insurance coverage for your children meets your ex’s requirement to provide the health insurance. Any cost incurred is coming from her spouse’s income, which is community income, so technically, it is the same as your ex providing the coverage.

Once your ex provides you with copies of the medical bills, it is your obligation to make payment to your ex in a timely manner, generally within 30 days. The healthcare providers are not looking to you for payment; your ex is the debtor to them. The fact that she may have a payment plan worked out with the providers has no bearing on your Court Ordered obligation to pay your portion to your ex on receipt of the bills.

Failure on your part to pay your ex the required portion of the medical bills in a timely manner could cause a contempt issue on your part.

When it comes to medical costs of your children, it can get confusing who is to pay and how much they should pay. Our attorneys have over 30 years of experience in family law. Visit www.sampair.com to schedule a free consultation.

Get Your Finances Back on Track After Divorce

Divorce can put a lot of strain on your life, especially your finances. Here are some tips to getting your financial life back on track after your split from your spouse.

Evaluate where you are spending cash that you don’t necessarily need to be spending and think of ways that you can minimize overspending. These kinds of payments could be shopping habits you could change at the mall to save some cash, or even reducing your interest rates, which could make a significant improvement on your current income.

Decide what kind of property would be best for you to live in based on your new financial situation, and do your research. Determine how much you can borrow and how that will affect any other goals you have, such as saving for your children’s education or a retirement fund.

Do a financial stock intake and assess all debts and assets that are either yours or yours and your former spouse’s together. This includes all debts on bills that should have been changed to be in either yours or their name once the divorce took place, making only one of you financially responsible for them.

Boost your career. If your current job isn’t what you would like, now is the best opportunity for a change. You are beginning a new life, and with that should come a new job if you’re not happy with the one you currently have. Take some courses to freshen up your skills, update your resume and explore opportunities that you may not have been able to consider before.

Start building an emergency fund, and after a divorce you will need time to rebuild your financial resources. Even if it is just a little at a time, start putting money away that would be available toward emergencies, vacations, and anything extra that you are unable to use your job income for.