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Alimony recipients often face new financial realities

Individuals in Tennessee and around the nation who were awarded alimony payments as part of their divorce settlement must take steps to ensure that they use this, often temporary, resource wisely. There are several steps that individuals who have recently finalized a divorce can take to improve their finances.

Although alimony is still being awarded, divorce courts nationwide are awarding smaller alimony payments for shorter periods of time. Often time, individuals who receive alimony payments were not working a full-time job during their marriage. While alimony payments can be an important tool to help recently divorced people rebuild their financial lives, many financial experts advise recently divorced individuals receiving alimony to establish more reliable sources of income as soon as they possibly can.

There are several steps the recently divorced can take to shore up their finances, such as finding a new and better job and attending classes that provide the necessary training to embark on a new career. Some individuals may even consider starting their own business, although it is important to be realistic when weighing the start-up costs of a new venture against the need for useable income in the short term. Another strategy that can help to improve post-divorce cash flow is moving into a smaller home, which can lead to more manageable monthly payments and reduced utility and maintenance costs.

Individuals that are considering divorce often feel confused and overwhelmed by the many decisions they are required to make to finalize their separation. Attorneys working in the area of divorce law may be able to assist their clients in navigating through the legal process and work towards a fair and equitable settlement.

Source: Fox Business, "How to Financially Readjust for Post-Divorce Life", Andrea Murad, August 02, 2013

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