Jul 26, 2022

5 Tips for Managing Finances After a Divorce

5 Tips for Managing Finances After a Divorce

A divorce is a significant challenge in anyone's life. No one ever goes into a marriage planning for a divorce, but it is a reality that many will face. Divorce can be messy, but it doesn't have to be. One of the most significant issues with divorce is managing finances and keeping everything in order. Read on to see how you can easily manage finances after a divorce.

1. Create a New Budget

One of the first things you must do after a divorce is create a new budget. All your expenses will look quite different than they did previously. Housing and groceries will look completely different, and so will your more unpredictable expenses like taxes and gas. Budget all this early so that nothing comes as a surprise later down the line.

2. Update Accounts and Insurance

Another task you should have at the top of your list is update everything. Because you are no longer in a relationship, you probably shouldn't be in a joint account with your former partner or paying for their insurance. Instead, you should separate everything to maintain financial independence and ensure you are not the recipient of any unnecessary charges or fees on their behalf.

3. Stay Disciplined

Going through a divorce can be rough for many people, and you shouldn't feel ashamed if you want to give yourself some self-care. With that said, you must also stay disciplined so that your finances can remain solid instead of going through a rough patch. Emergencies are always random, so stay disciplined and keep a safety net so that you can still take care of yourself in the worst situations.

4. Don't Be Afraid To Reach Out

Depending on the relationship dynamics, you may not have a job or a place to go after your divorce. It can feel like your whole life is uprooted, and you suddenly must fend for yourself. Financial advisors can help put together your finances and construct a spending plan for you, and you can also reach out to friends and family for any assistance.

5. Set Financial Goals

When in a relationship, a couple often create joint financial goals. They can go on a vacation after this promotion, move into a forever home this year, etc. These plans will all change when you go through a divorce. Instead of going without a plan, you must construct a plan for your new life. This strategy helps you take control of your finances and get back into a positive financial mindset.

Managing finances after a divorce will be challenging, but with these tips, hopefully, it will be at least a little easier. To make the process easy on yourself and your wallet, consider looking into hiring a lawyer to properly represent you and your interests. At Schiller DuCanto & Fleck, we are experts in Illinois collaborative family law and can help you get through a divorce in the best condition possible.

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