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How to avoid the financial challenges of divorce

Divorce, even when uncontested, is never easy. Couples that realize their marriage can no longer survive will ultimately file for divorce, even if they still have a love for each other. Divorce does not have to be as financially challenging as some make it out to be. In fact, there are ways to avoid the financial challenges of getting divorced in Fort Lauderdale, Florida.

One of the biggest financial challenges of divorce is maintaining the lifestyle you became accustomed to while married. Some divorced people can continue to live the same lifestyle if they were awarded alimony for such a reason. But, for those who were not awarded alimony or whose alimony expired, this can become a problem. Money will become tight and might run out in due time. One way to avoid this is to live within your means. This is done by saving between 10 and 15 percent of your income and using the remainder to purchase essentials such as food, clothing, rent or pay for medical bills and other items.

Should you need money because it is very tight, you can do so by withdrawing it from your individual retirement accounts (IRA). Typically this can cause a tax penalty, but when getting a divorce, you can avoid the penalty. The typical penalty is 10 percent, but the Internal Revenue Service (IRS) waives it when the IRA is being transferred to your name from your spouse's name.

Create a budget and learn to stick to it. Simply having a budget does not help you live within your means. You must stick to it to avoid any financial problems after getting divorced. Many people use the envelope trick to stick to a budget. Create envelopes for all of your expenses and put money in each one when you are paid. Only use the money for the designated envelope. Do not take money from the heating bill envelope to help pay for the mortgage. This is how you can get into trouble financially.

Visit our site today to learn more about the financial challenges of divorce and how divorce mediation can help you in Fort Lauderdale, Florida.

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