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How You Should Plan Finances After Divorce Divorce can bring serious changes on the family, in terms of financials. According to studies, it have shown that parents, most especially mothers have found themselves living in poverty or, has substantially lower income bracket after divorce. Basically, the same thing can also happen even to the non-custodial parent with a decent income. With regards to this matter, it is essential to form a good financial planning strategy that'll help you avoid the shock and also, help you have an idea of what to expect. Keep on reading to know what you have to consider and do. Tip #1. Expect the unexpected expenses – the former spouse normally find themselves to be spending more money than what they must on everyday items after divorce. The reason for this is, they end up in replacing all small things that they'd used to take for granted similar to tools, kitchen utensils, towels, cameras and so forth. These small purchases they make can add up to a significant expense when combined.

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Tip #2. Determine child support – do you have an idea of how much you have to pay for child support or perhaps the amount you'll receive? If not, then you should do as the amount of child support will vary from one state to the other. If you can find a general guideline on how the support is computed, it would work great for you.

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Expert's research showed that payments for child support won't completely cover the expense of raising a child on your own. Thus, do not expect it to if you are the one who is receiving child support. In the event that the support is delayed, it is important that you have a contingency plan in place. Tip #3. Consider your credit score – there is a possibility that your credit score could take a hit after divorce. This can make it much harder to apply for home loans or get a car and moreover, it could increase the interest rate on your credit, which you should factor in your budget as well. Tip #4. Expenses could rise when you're expecting them to fall – there are many divorce couples who assume that they can half the cost of what they spend after divorce. Simply, this is not true as while the living cost per house might go down, it'll rise substantially on per person basis. The reason being is, you no longer benefit from the economy of scale. In other words, you and your former spouse needs to pay for a separate of everything from the utilities, residence, food and so forth.