Managing Finances After Divorce
  • | October 4, 2016
When you get a divorce, the emotional pain will often overshadow many of the other issues you are going to be facing, namely your finances. You need to think about a number of different things at this time, including the division of your property, as this can play a big role in your finances. Let’s look at some of the different things you need to think about to get a better handle on your finances after a divorce.

Tips for better finance after a divorce:

  1. Update Documents and Accounts. Whether it is your bank accounts, your insurance forms, your taxes, or anything else that deals with your finances, you need to make sure they are updated. You and your former spouse should no longer be sharing any of your accounts. It’s a bit of a hassle to do this, and it takes some time, but it’s far better for you in the long run. Imagine meeting someone special a year from now only to have her find out that you still have a savings account or a credit card with your ex-wife. Things probably won’t go very well for you.

  2. No Second Income Means Needing to Rework the Budget. If you’ve been used to having a second income to pay for everything, life is going to be changing. You have to rethink your budget, and that might mean making some sacrifices for a while. Consider how much you are making each month and make sure that you are living within your means. This might mean moving into a smaller place than you would like, at least for the time being. It might also mean you have to trade-in your sports car so you can get something that’s more economical. Keep in mind that this isn’t permanent. You will be able to get your finances back in order and you will be able to start living like you once did. You just need to be cautious right after the divorce.

  3. Consider Potential Additional Expenses. You also need to think about some of the additional expenses that you might have to pay after a divorce. Depending on the circumstances, for example, you might have to pay alimony or child support. It’s important that you make these payments, or else you could find yourself in legal trouble, which is the last thing you need.

  4. Pay Down Your Debt. If you have any debt, whether it is on credit cards, old loans, or anything else that might be in your name, it is essential that you pay it down as quickly as possible. This will make it easier to get your finances back in order.

  5. Get Things Organized. Take the time to organize your finances. Know how much you have in the bank and in savings, know what you owe and when the bills are due. Pay close attention to these things so you don’t end up damaging your credit or getting into a financial hole.

These tips will help to keep your finances squared away.

Good luck.