At the most basic level, business transition planning is a strategy that can be put into play when a business is sold or changes hands. For company owners nearing retirement, a successful transition plan can play an important part in creating and preserving the value of the business after it has changed hands.
Atlanta Financial Blog
Are you prepared for alimony to stop? Three ways to improve your finances if you’re getting alimony
A few months ago, I saw a sale sign in front of my neighbor Gina’s house. She’s lived on my street even longer than I have, so I was surprised that she was selling her home.
I bumped into her a week later at the supermarket and asked her where she was planning to move.
She told me (with some regret) that she was downsizing to a less expensive house. The alimony payments she’d been getting from her ex-husband had ended last year, and she hadn’t prepared for the loss of that income. She soon realized she could no longer afford to live in her home.
Luckily for her, it’s been a seller’s market. Her home quickly sold. After she closed on the sale, she moved to a smaller, older rowhome one suburb over.
Gina was a good neighbor and I was sad to see her go. Unfortunately, many divorced women find themselves in a similar situation to Gina. Having a good plan in advance may have allowed her to stay in the home she’d lived in for two decades.
- Adjust your mindset.
Too many alimony recipients view it as a permanent paycheck. But it’s not designed for that. Alimony is intended to bring two separate households closer to financial parity following a divorce. This is particularly important if one spouse left the workforce to raise children while the other spouse continued to work outside the home during the marriage. In most cases, alimony isn’t forever. Generally, the length of alimony is related to the length of the marriage, and the relationship can vary greatly from state to state and depends on many other factors as well. In addition, if you remarry or your ex-spouse dies, that “paycheck” you’ve come to depend on will stop. Are you mentally and emotionally prepared for that?
- Review your current budget and estimate your future expenses.
You do have a budget already, right? If not, this is the time to create it. You won’t be able to project the future of your finances (after alimony stops) if you aren’t tracking your spending now. First, review your historical and current expenses. Don’t forget to account for discretionary spending that doesn’t happen every month, like vacations, holidays, birthdays and other special occasions. Compare that to your income. Assume both your bills and discretionary expenses will increase by 1% to 3% every year. Now deduct your alimony income from that budget. You may find, like my neighbor Gina did, that you’ll need to make some changes in order to live comfortably.
- Think of alimony as an investment.
One of the best ways to use your alimony payments is to invest in yourself. That doesn’t mean taking exotic vacations or weekly spa days. Consider using it to pay for additional education or training to further your career. While that doesn’t sound nearly as fun as a trip to a luxury resort, the benefits will last much longer–and may actually make you MORE money in the long run. At the very least, you should direct a portion of your alimony payments into a long-term savings account.
An experienced financial advisor can make a huge difference in helping you plan for your best financial future. Reach out today – we’d love to connect.
At Atlanta Financial, we have been by the side of women divorcing for more than 30 years. Through our DivorceFIT™ process, we will walk with you through the big picture financial issues all the way to the smallest of details that need to be addressed as you go through divorce and after. Our goal is to help you transition to the next phase in your life on solid financial footing.
The travel industry has begun to see growing demand as we move closer to summer. However, not all travel will be the same, as much of the demand is directly related to the COVID-19 vaccine and reduced CDC restrictions. Instead, industry trends have emerged based on individual comfort levels as they apply to different modes of travel.
Below we will explore some of the factors that have contributed to an increase in travel and how different industries are responding to it.
Following a year of economic instability, it appears that many of us are turning our attention to something that’s been around for decades, but has recently piqued national interest – inflation. In fact, a recent study found that people are Googling the word “inflation” at a rapid rate, with a peak not seen since 2010…
As mothers, sisters and daughters, women are often counted on to be caregivers for family members in need. Whether it’s something as small as a cold or as debilitating as a terminal illness, women are typically the ones to care for and help out when a loved one is sick. But what happens when the caregiver is in need of her own care? Too many women are stuck facing this dilemma head on, instead of preparing for it while there’s still plenty of options, resources and time ahead. Below are a few reasons why it’s so important for women to plan for their own long-term care strategies now.