How Far Will My Divorce Settlement Get Me?

Receiving a divorce settlement may feel very encouraging at first, but how far will this money actually get you in North Carolina? How much do you need to live comfortably after your separation? How do you know whether to return to the workforce? These are all common questions for spouses in the Tar Heel State – especially those who are not particularly financially savvy. The simple truth is that you should pursue the best divorce settlement you can possibly get your hands on. Fighting for financial security is always a smart choice – especially during a period of high inflation and troubling economic uncertainty.

That being said, putting a specific target on your divorce settlement is also a smart move. If you set clear goals, you can negotiate more effectively. More importantly, you can explain why you need a certain amount of money. One of the most effective negotiating strategies is to back up your claims with clear evidence. For example, you might argue that you need a certain amount of money per year to cover living expenses. These arguments are more convincing when you can back them up with calculations you’ve made beforehand. Let’s take a look at some of these basic calculations to establish a general idea of how much you might need and how far it will get you.

Spouses Often Struggle Financially After Divorce

The first thing you need to know is that planning for your financial future post-divorce is incredibly important. Statistics show that many spouses – especially women – encounter serious financial issues after divorce. These individuals may not be prepared for the realities of divorce, including the sudden lack of income or a return to the workforce. They may also have unrealistic expectations about the future, and they might not understand the true cost of living in North Carolina. It is relatively easy to see your divorce settlement vanish within a few years without effective financial strategies.

The Top Financial Priorities after Divorce

When setting financial goals for your post-divorce life, you need to prioritize. The number-one living expense today is housing, so your first step should be to make sure you have a roof over your head after the divorce is finalized. When considering housing costs, it may be useful to take into account a few important statistics: The average median price of a single-family home in 2022 was about $370,000. In terms of rent, a two-bedroom apartment will cost you about $1,100. Of course, the exact costs depend on where you’re looking in North Carolina – as some cities are cheaper than others.

The general rule is to spend a maximum of 25% of your income on housing. This should provide you with a general idea of what you need from your divorce settlement in order to live comfortably. If you choose a home that is too expensive based on your foreseeable income, your divorce settlement will quickly vanish. When making your income calculations, you can take your alimony and child support money into account. Your child support money is meant to help provide reliable housing for your children, so you are perfectly justified in putting these funds towards rent or a new mortgage.

A qualified divorce attorney can help you make these housing calculations. They can also help you pursue a settlement that will cover the cost of a new home. Of course, there might not be any need to get a new home if your lawyer helps you fight for the family home that you already own/rent. Just remember that if you do end up keeping the family home, you might also be required to provide your ex with equivalent assets worth 50% of the home’s value.

You also need to consider all the costs that go along with home ownership. Even if the mortgage is paid off, you still need to worry about property taxes, home insurance, maintenance, and so on. You should factor in these costs when determining the most logical housing plan after the marriage.

Where Can I Find an Experienced Divorce Attorney in North Carolina?

If you have been searching for a divorce attorney in North Carolina, look no further than Arnold & Smith, PLLC. Over the years, we have helped numerous divorcing spouses in the Tar Heel State – including those who are concerned about having enough money in the foreseeable future. These concerns are well-warranted, but there is no reason you have to struggle financially after your divorce. With effective planning, you can set clear goals and pursue exactly what you need to live comfortably after your marriage comes to an end. Book your consultation today to consider your options and pursue the best possible results.