How To Regain Financial Independence After Divorce
The Real Toll Divorce Has On You
After a divorce, just about every aspect of your life will change to some degree, and this applies to your finances as well.
You and your former spouse will separate your income, financial accounts and assets from one another. For many people, this is a significant change to their finances, leaving them feeling uncertain as to how they can regain financial independence.
Though it’s true that your financial situation will change after divorce, the good news is there are actions you can take to regain your footing and become financially independent. Let’s take a closer look at what you can do to adjust to your new finances after divorce.
Post Divorce: Next Steps
Untangling your personal finances after divorce can be overwhelming and confusing. Don’t let this be the reason you delay taking steps to regain your financial independence!
The task can seem overwhelming if you try to tackle it all at once. Rather, start with these three steps to help you understand your new financial situation and where you may need to make some adjustments.
First, understand any and all debt that is attached to your name and what you are personally responsible for repaying. Second, list your monthly income. Keep in mind this may come from various sources such as your job, child support or alimony. It is also important to understand the different ways in which the money you receive will be taxed. Third, list your monthly expenses such as your mortgage, utilities, groceries and childcare. Also identify less common expenses that don’t occur monthly. After you have compiled these numbers, you will be ready to establish your family’s new budget.
How To Gain Your Financial Independence Back
After a divorce, there are a few steps you should take right away to regain your financial independence and set yourself up for financial security in the future.
- Be thorough about completely separating all financial accounts from your former spouse.
- Create a list or spreadsheet of your monthly expenses versus monthly income.
- Cut back on unnecessary expenses, at least until you’ve adjusted to your new budget.
- If needed, seek financial assistance from government and community programs.
- Give yourself a realistic spending allowance – and stick to it!
- Work with a professional financial advisor to map out immediate and long-term financial goals.
The Benefits Of Being Financially Independent
Depending upon the length of your marriage and your financial situation within that marriage, it can be challenging to remember what it’s like to be financially independent from your spouse. Financial independence is both empowering and humbling. After a divorce, you have nearly no other option than to become self-sustaining and financially independent. By doing so, you will create a new life for yourself and find your purpose moving forward.
If you are worried about how you will regain your financial independence after divorce and have unanswered questions, let us help! Call us today for a no-cost consultation where we can help point you in the right direction.