Receiving alimony payments from your former spouse in West Palm Beach can help your financial situation immensely. These payments will be made to you at a specified time and amount based on the decree provided by the court. The decree will not mandate how the money should be used by the recipient. So, here are the best ways you should use your alimony payments.
Do you still have debt following your divorce? A great use of alimony payments is to pay down as much of your debt each month as possible. The sooner you get rid of the debt, the sooner your credit score will improve, and you can take out a loan, mortgage, buy a car or acquire a student loan.
Do you need to rent a place while you pay down your debt? Use the alimony payments you receive each month to pay rent in an apartment or condominium. Rent can be expensive, so be sure to put enough money aside to cover it each month.
Keep your insurance in effect after a divorce using alimony payments. This can include renter’s insurance, car insurance, health insurance and eye coverage. You will likely be dropped from your former spouse’s coverage plans, which means you will need to find your own coverage.
Put money aside for your children. Open up a savings account for them or help them pay for their education with the alimony payments you receive. You can also use the money to go back to school for a degree.
Now that you know the smartest ways to use alimony payments, you can protect your financial situation. Don’t use alimony on unnecessary purchases that you cannot afford. Protect your finances and use alimony in one of the smart methods mentioned in today’s post.