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How the cost of living crisis factors into divorce

On Behalf of | Apr 8, 2024 | Divorce |

During your marriage, you may be used to a certain standard of living and certain comforts that a dual-income household can afford. However, after a divorce, the financial landscape of your future can change drastically.

Even if your own income is comfortable, you must still consider external factors that can affect your financial health in a single-income household after dividing your marital property. According to various news sources, the rising cost of living is one factor that individuals in North Carolina and across the nation must take into account.

How can inflation have an impact?

Reports say inflation is decreasing. However, CNN reports that the cost of living is still higher than many people across the country would like to see. A survey indicated that about 64% of workers in the United States are worried about their financial health, considering their income compared to the prices in the store.

Even a comfortable income can feel strained in this current situation. What can you do to reduce the strain that external economic factors can have on your personal finances?

2 tips to manage these effects

You may not feel the strain on your finances. However, you can take proactive steps to prevent any financial stress – and the emotional stress that often comes with it. It can help to:

  1. Reassess your budget: It will be critical to adjust your budget after divorce in any situation. You must reevaluate your bills and spending in a newly single-income household. You may also have to factor in child support payments or even temporary alimony payments.
  2. Prioritize your needs: Take a close look at your expenses. Is there anything you can cut back on in the meantime? For a while after you finalize the divorce, it can help to put your needs first and cut back on the wants, just to get an accurate picture of your financial standing.

Taking steps to protect your financial health, especially during times of greater economic uncertainty, can help you remain in a comfortable position. Divorce is stressful enough. Being proactive about your finances can help you avoid stress on that front.