How to Manage Your Finance after Divorce?
Everyone ties the knot with a wish that it lasts for good and ever. For some people, the situation comes to a point where it may feel parting ways with each other is better than living together under the same roof. The process of divorce not only leaves many persons emotionally bankrupt but also fobs off a lot of expenses on them. Added to the turmoil is a lot of legwork that takes a toll on one’s physical health.
I went through all these five years ago. And I know it is never easy to drive oneself back from the brink of emotional collapse to a situation when you can feel ‘happy’ once again. While going through such kind of problems, most of the persons tend to ignore the reality that they need to take more care of their finances immediately after the divorce.
Though the process of divorce is the precipitating event at the moment, you must not leave finances at the rock bottom of your list of priorities. Here is how I managed to regain control of my financial situation and rebuild my wealth:
For most of the divorcees, a break up in marital life means a long-time pause in their financial life. They don’t like taking big money decisions. But that is utterly wrong. I know you are mentally stressed just like what I was a few years ago, but ‘show must go on’. Whatever happens in your life, ‘get going’ should be the mantra as long as you live.
However, that never means these people will make big money move without anyone’s advice. In fact, it should be better if you take advice from a financial planner. Also open up to ideas from your friends, relatives or any other person who wants to lend you help in times of crisis.
I always relied on my family’s financial planner. She not only helped me with her financial acumen but also gave me mental support.
It is really difficult to concentrate on your finance after such a drastic change in your life. With memories lingering and troubling, you want to turn your back on delayed payments, low credit score, investment planning and dealing with every single aspect that you used to handle together once upon a time. But how long will you deny the reality? Instead, face the reality boldly. Sooner you do so, the better!
Make a plan of priorities. Create a spreadsheet, this time alone. It will help you be organized as well as control your financial situation. Re-planning your priorities is important not only after a divorce but also in times of any financial upheaval in life.
Rebuild your emergency fund
Such fund is what you dip into in times of crisis. It is the responsibility of every adult to build up an emergency fund. And if you are going through a divorce or the process is just over, rebuilding an emergency fund will be more important as you may have spent it completely to pay for attorney’s fees, child support or any other purpose. With enough in an emergency fund, you can enjoy a smooth financial life for at least, six months after a divorce.
Instead of putting every bill on your credit card, you can meet your necessities by using an emergency fund. The newly divorced persons should try to earn extra income. I started freelancing while working in a company. Doing so will contribute to your emergency fund and will rebuild it faster.
What is more, by keeping yourself busy with extra works, you will be able to make use of your free time. It will be good for your emotional recovery.
Rebuild your credit line
After a divorce, you have to pay for everything from your income. Failing to make payment on any one of them could see a dip in your credit score. If you have personal or shared debt on your credit card, pay it at once. Low credit scores will be a stumbling block on your way to get loans, which will negatively affect your effort to rebuild an emergency fund and save money.
Keeping yourself emotionally strong is the first thing you should do while taking care of your finances after divorce. Where emotion plays a role, wisdom takes a backseat.
Do you have any better idea of controlling finance after divorce? Share in the comment here.