How to Rebuild Your Finances After Divorce
With divorce comes a change in lifestyle, and with that comes a change in financial planning. Knowing how to alter your finances after divorce can be a confusing and sometimes even stressful. Thankfully, there are some simple steps you can take to make the transition easier.
Here are some tips to rebuild your finances after divorce:
1. Get Organized
When it comes to staying financially fit, organization is key. Taking the time to review your progress on savings goals, keeping track of the various due dates for your monthly bills, and setting automatic deductions where applicable can be a huge help towards maintaining financial stability. It might be a little overwhelming at first, but getting yourself organized will go a long way in easing the stress of your divorce and minimizing the negative impact it may have on your finances.
2. Reevaluate Your Budget
Transitioning from two incomes to one can have a dramatic effect on your spending ability. Because of this, you’re probably going to want to retool your budget to account for this change in cash flow. Consider taking the time to sort through your expenses from the past several months and compare that to your monthly take home pay. If your expenses are exceeding your income, you’re going to have to make some alterations. Start by cutting back on non-essential purchases and then try looking for deals on the services you’re already using. If you’re still struggling to balance your budget, you may have to adjust your contributions to savings plans and investments or pick up a side-hustle to boost your cash flow.
3. Drop Your Joint Accounts
Whether it was a bank account, credit card, or investment fund, you’re going to want to separate yourself from your former spouse’s finances as soon as possible. This will allow you to garner a better understanding of your own financial situation and develop a plan to be self-sufficient. Not only that, but separating your finances will protect you from any destructive actions your ex may perform out of apathy or anger. Better to be safe than sorry.
4. Don’t Be Afraid to Ask for Help
Divorce is rarely an easy thing. Between the emotional strain and stress of legal proceedings, you may find it difficult to find time to focus on your finances. In situations like these, it may be in your best interest to consider outside assistance. Speaking with a financial planner can help you get your fiscal affairs in order with minimal effort on your part. And if you’re struggling with post-divorce debt, there are tons of excellent debt relief options available to you.
While divorce may be a difficult thing to deal with, it’s important to remember that you’re not alone. Numerous people (myself included!) have gone through the same process and there are tons of resources available to help you make the process as easy as possible.
Have you had to rebuild your finances after divorce? What challenges did you face? Let us know in the comments below!