When making resolutions for a new year, many people strive to save money – or even make more than they did the year before through wise investment strategies. In fact, the Pew Research Center states that resolutions focusing on finances are the second most common goal, with health-related goals being the first.
If the start of the new year also brings the end of your marriage, it is still possible to set and even achieve new financial goals. However, you must plan ahead. Here are some critical matters to consider to secure your finances in this new year.
1. Prioritize your retirement planning
Regardless of your age, it is a good idea to focus on the investment in your future after you retire from the workforce.
This is also an important issue to address in your divorce. A portion of your retirement savings could be subject to division. Additionally, there are specific steps to follow when it comes to taking money from these accounts and dividing them. Understanding these rules can help you stay on track towards your retirement goals.
2. Consider any tax changes
Make sure you stay updated about any changes in tax laws, whether at the North Carolina or federal level. However, you should also be aware of any changes the divorce will bring to your tax filing. This could include your:
- Tax withholding
- Filing status
- Tax deductions
The date you finalize your divorce will determine when you can make these adjustments. It will help to review the Internal Revenue Service’s guidelines regarding this matter to help avoid any tax issues after the divorce.
3. Include fun in your budget
As we have discussed in past blog posts, a divorce will mean devising a new budget. The divorce will require the division of marital property and often the reliance on one income, rather than two. Preparing a new budget is serious business, requiring careful calculations.
However, as you enter a new year, it can help to plan and budget for fun events. These plans could be as big as a vacation to look forward to, or as small as a night out each month. Setting aside the time – and the funds – for fun plans can be a good step to keep you and your mental health thriving as you begin a new chapter, in more ways than one.