Spousal support is a common part of divorce in California. It is also known as alimony and is only paid by one person to the other person. It can be ordered by a court or it can be agreed upon by the divorcing couple and recorded in their arrangement. Once it is finalized, it will need to be followed or else the parties could find themselves in court. Here are some common uses for spousal support payments:
If you are renting a place, it's best to use the spousal support payments to pay the rent. This is likely your biggest expense. Put these payments to good use right away and pay the rent. Make sure you put aside enough each month from the payments to cover the rent.
If you have debt from the marriage that you and your former spouse split, or if you have your own debt, be sure to pay down some of that debt with the payments. You should try to get rid of as much debt as possible and if it is done by using spousal support payments, that is fine.
You can also use spousal support payments to stay insured. This can include renter's insurance and health insurance, especially if your former spouse removed you from his or her insurance plan at work.
Open a 529 account for your children and deposit some of the spousal support money into it. These accounts are college savings accounts and it's never too early to start saving.
Now that you know what you can use spousal support payments for, it's time to get your finances in order in Fullerton. Do not use the money freely. Make sure you take care of bills and other responsibilities first.