Finances

Supplementing Your Income When Going Through A Divorce

The average cost of a divorce in the US is $20,000, and that’s if it goes smoothly in arbitration. For couples who need to battle it out in the court room, a two-day trial alone can stretch into the region of $25,000 before any settlement figures are reached. There’s no denying that divorce is an expensive business, and many ex-spouses struggle to stay afloat financially. If this sounds familiar, you might benefit from making a passive income – earning an additional stream of money without trading too much of your time. Consider the following ways to give your cash flow a boost during this difficult stage in life.

Renting Your Space

Space is a hot commodity, and the digital age makes it easier than ever to match up people needing extra additional room with those who are looking to make some money. Take a look at your property and assess if there are any money-making opportunities to be had. Do you have a garage that you could offer as a storage space? Or a parking space that you don’t use all the time? If you’re happy to welcome guests into your home, then you might even consider letting out a spare bedroom either on a semi-permanent basis or in an AirBnB-style arrangement.

Crowdfunding Real Estate

Another way to make money from real estate requires a small upfront investment. Starting with as little as $500, you can crowd-invest in a specific property and watch your pot grow so long as the market is looking strong. It’s a fantastic way to gain knowledge of the industry without requiring too much risk. With the right investment, you should be able to enjoy consistent  returns, without the responsibility of being a direct property owner.

Use Your Phone

With increasing numbers of consumers becoming attached to their smartphones, perhaps it’s time for your favorite device to get to work for you during your divorce. Some companies will pay you to display an ad on your smartphone lock screen – all you have to do is download an app. It’s also possible to make money by calling up companies as a mystery shopper, asking basic questions that customers need to know and then recording your experience of the call to be used by marketing departments.

Blogging

If you have access to a computer, and you love to write, then this is a great way to generate an additional income stream. If you have a hobby, skill or just a subject that you feel passionate about, then set up a blog and become an expert on the topic. Blog about everything to do with it, providing informative content which offers value to the reader and shout out about it on social media to gain a band of loyal followers.

Once you’re hitting some decent traffic figures, you’ll be able to make money from advertising and affiliate revenue. This option does require a little more effort than some passive income ideas, but once you’ve carried out some initial groundwork, you should be able to sit back and make money in your sleep.

These are just a few ways to generate additional funds, and of course there’s nothing to stop you having several streams of income running at once. The important thing to remember is that there are plenty of opportunities out there, and that will continue to be the case long after your divorce is settled.

Author of this article, Lucy Wyndham, is a freelance writer and former Financial Advisor. After a decade in industry, she took a step backward to spend more time with her family and to follow her love of writing.  

Can A Reverse Mortgage Benefit A Divorce Settlement?

photo-1515180711443-f8685c6d6a74Divorce shouldn’t mean your life is over, but rather a new beginning to living life according to your rules. “Grey divorce” is becoming quite common as nearly one in ten marriages ends after being together for more than 40 years, according to Pew Research. As for the causes, this has been happening for various reasons – one of which is due to retirement. Elderly couples are looking to make their golden years enjoyable, even if life was either too busy or stressful in the past. So, can a reverse mortgage benefit a divorce settlement?

Dividing the Assets

Seniors often have many assets that are shared and nearly impossible to split. During negotiations, a family home is often one of the most sought-after assets as they are usually paid off and hold a lot of equity. That is why divorcees over the age of 63 are looking to compromise on a divorce settlement and help settle their assets with the help of a reverse mortgage. One of the benefits of a reverse mortgage is how it allows one partner to continue living in the home without paying for a mortgage nor have access to equity funds.

Splitting the Benefits of Homeownership

During the divorce settlement, splitting the home asset is usually the first decision to make. Instead of selling the home entirely, spouses could choose who can stay in the home and keep the reverse mortgage while the other party receives the equity funds. This useful tool helps couples reach an agreement without further complications. However, it is important to understand that the spouse who continues to stay in the home will be held responsible for certain obligations such as homeowners insurance and property taxes.

Provide Less Drastic Financial Changes

Perhaps the couple is used to living off two solid incomes – whether it be from owning a business, social security, or pensions from their retirement. After a divorce, both parties will be forced to adjust to the sudden drop in income. In some cases, getting the home in the settlement can be a huge benefit. The funds may come in a line of credit, monthly installments, or a lump sum. Additionally, if you plan to sell the home, using a reverse mortgage can help you purchase an entirely new home within your price range. What’s more, you will not have to worry about making the mortgage payments.

Author of this article, Lucy Wyndham, is a freelance writer and former Financial Advisor. After a decade in industry, she took a step backward to spend more time with her family and to follow her love of writing.  

Avoiding Debt During Your Divorce

Even though divorce can be hard, it can provide a new beginning, a fresh start from where to build a new independent life. With plenty to consider at this time, planning ahead can be vital in ensuring you have a financially stable future. Although daunting, this process provides the opportunity to refresh your financial situation and take control of any previous money issues.

There are a number of finance options available, including consolidation and refinancing, to ensure that you can stay financially afloat, whilst also getting the support to turn your life around and find happiness again. Before you potentially encounter financial concerns and worries, there are some simple tips you can follow in order to solve financial issues between yourself and your ex, making a smoother move forward.

Removing names for joint accounts

A simple task that is often forgotten involves the removal of additional names from a joint account. Although this is not always possible if there is debt owed, you can request that the account is put on hold. This will prevent your ex-partner, or yourself, from using the account and accumulating more debt. Once the debt has been settled remember, to close the account immediately.

Pay up as soon as possible

Although few people are in the situation where they can pay off their debt, especially during a divorce, it is important that you create a plan in order to do so as quickly as possible. The sooner this can be done the better, and if you and your ex are amicable it can make for a much easier divorce process, without having to battle out who will be paying for what account. Again, as soon as the account is zeroed, close it down.

Cancel old accounts

Perhaps you have previously opened a joint account with another bank and forgotten to close it? When separating many people create new accounts and go to alternative banks, however if they inquire and find they already have an account existing they can start using it again. If this is a joint account than any debt created on the account will also be in your name. Hopefully your ex would not knowingly create debt issues for you, however it is best to check that all old accounts are closed down in case you or your old partner decide you wish to open a new account with the bank.

With a divorce you do not need the further stress and worry of financial issues pilling up. If you can make sensible choices in this time, you should be able to avoid the unnecessary worry of getting into financial difficulty and see the independence as a move toward a better future. That way, you will have the time and energy to focus on the important things like you and your family’s happiness.

      Author of this article, Lucy Wyndham, is a freelance writer and former Financial Advisor. After a decade in industry, she took a step backward to spend more time with her family and to follow her love of writing.