How to Build Wealth After a Long Island Divorce
If you’re going through a divorce, you should know that it’s important to take care of your finances now so that you can start fresh and build wealth for your future. Below, we discuss some key financial considerations for those who are dissolving their marriages, like budgeting, investing, and insurance so that you can make the most of your money after a divorce.
By following these tips, you can set yourself up for a bright financial future despite an unfortunate turn in your personal life.
The Importance of a Solid Financial Foundation When Getting a Divorce in NY
If you have little to no savings when getting a divorce, it’s important to start building a solid financial foundation as soon as possible. Take a good look at where your money is currently going to see where you may be able to cut back on expenses. If possible, you may have to try to increase your income by working overtime or getting a second job.
It’s also crucial to start building an emergency fund. This will help you cover unexpected expenses that come up during the divorce, like court fees or doctor’s appointments if you’re no longer on your spouse’s insurance. Start by saving as much as you can, even if it’s just a few dollars. Eventually, this figure will grow so long as you’re replacing what you take out for emergencies over time.
Determining Your Post-Divorce Budget
Take a close look at your budget. If you are used to living on a dual income, you probably need to find ways to cut expenses and increase your income. Start by making a list of all your expenses, like mortgage or rent, car payment, insurance, etc., and variable expenses like groceries, gas, and entertainment.
Then, look for ways to reduce your costs. Can you get a cheaper cell phone plan or cut back dining out? You can also try shopping around for better car insurance rates and use coupons on groceries. This can be difficult to sustain though, so you should also think about ways you can increase your income if possible.
Consider getting a higher-paying job or taking on a freelance opportunity or side hustle if you can, or negotiate a higher salary with your employer at work. Just be sure to account for the increased cost of child support or alimony if applicable.
Investing for Your Future After Divorce
Investing is one of the most important things you can do to build wealth after a divorce. While there are many different ways to invest, one of the best ways to ensure your long-term success is to diversify your portfolio.
Diversification simply means investing in a variety of different asset classes, such as stocks, bonds, and real estate. By dispersing your funds across multiple types of assets, you can reduce your risk of loss as opposed to investing everything into one kind of asset that may do poorly and leave you with little to nothing.
There are many different ways to build a diversified portfolio. One way to do this is by purchasing a relatively equal mix of stocks and bonds, or fewer bonds and more stocks if you want to take more risk or the reverse if you prefer to make safer investments.
This approach can offer you the potential for growth through stocks while providing some stability through bonds. Another way to diversify your portfolio is to invest in a variety of different types of stocks, such as large-cap, small-cap, and international stocks. This approach can help you to minimize your risk while still providing you with the opportunity to capture returns from different parts of the market.
No matter how you choose to diversify your portfolio, the key is to start investing early and often. And by investing regularly, you can take advantage of dollar-cost averaging, which helps smooth out market fluctuations over time.
How a Capable Long Island, NY Divorce Lawyer Can Help You
The divorce process can be a difficult and stressful time for everyone involved. One of the biggest concerns during and after a divorce is finances. With careful planning and execution, you can rebuild your financial foundation and create lasting wealth. You should also consider estate planning when considering your financial future.
At Hornberger Verbitsky, P.C., we have worked with countless clients who are going through a divorce and understand the financial challenges and stresses that come with this process. Our team of divorce lawyers will work with you to ensure that you get the best possible outcome for your divorce, both financially and emotionally. Call us today to schedule a consultation at 631-923-1910 or fill out the short form on this page.
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