31 Mar 2023 | Lifestyle

Divorces are an unfortunate side effect of falling out of love with someone and although they are quite common, they are also emotionally and financially draining. When you’re mourning the death of your marriage, the last thing that anyone wants to think about are their finances but in order to make sure that you’re able to live on your own again, financial planning is essential.

Starting over financially after a divorce can be daunting on many levels. If you have recently divorced, you may still be dealing with divorce-related legal bills. Furthermore, you’re probably trying to manage your expenses on a lower income than you’re used to, while only seeing half of your assets when you open your investment statements.

If you’re unsure how to handle all of these post-divorce financial tasks, this guide will walk you through some of the most important ones.

Take Time to Think

Regardless of how things ended, a divorce can put anyone into an emotional spiral. Trying to manage your finances right after the divorce is finalized can further compromise your mental reasoning, give yourself some time to recover.

Creating a Team

There are several people that you’re going to want in your corner when you start looking at your finances. You’ll need a financial planner and a tax planner to start out with. Having professionals analyzing your financial position can help to take the stress out of managing money but ensure that you are aware of the costs for their services. You’ll want to make sure that you add it into your budget.

Counting Assets and Liabilities

It’s now time for you to take inventory of your entire life including both your assets and your liabilities. You’ll want to include outstanding credit cards, loans, any investments that you have, and more. Your financial advisor will be able to help you determine whether you are entitled to any assets that were purchased during your marriage.

Protecting Yourself

Even though you may have parted on mutual terms, it’s still important that you protect your financial security. Take the time to ensure all of your joint debts have been dealt with and that you close all of your joint accounts. You’ll also want to set up new accounts that are only accessible to yourself.

Create and Update a Budget

Budgets are one of the most important parts of ensuring financial security and you’ll want to make sure that you keep track of the money that you’re bringing in and the amount that you’re regularly spending. Consider if there are any ways that you can downsize to live more comfortably, as you’ll be accustomed to collecting 2 checks at the end of every payday. You’ll also want to determine how much money you’re going to need to start saving for retirement funds and other expenditures both now and in the future.

When it comes to surviving a divorce financially, remember that millions of people have done so, and you can, too. Consider the most difficult times you’ve experienced and the financial skills you’ve developed to get through them. If you follow the advice above, you’ll be well on your way to successfully reestablishing your financial life after divorce. You can do it!


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