Tips To Becoming Financially Independent Following A Divorce

Legal Lotus - Family and Trial Attorneys

A divorce translates into a new beginning. However, when it comes to finances, it can mean an uncertain future. You are now solely responsible for yourself. This can be a scary proposition.

Being financially independent after a divorce may give you a few stressful moments, but it is easier to achieve than you may think. Here are a few ways to take charge of your finances and thrive:

Establish a Budget

You need to review your incoming and outgoing funds. Begin by writing down each and every daily expense. During your marriage, your daily $ 6.00-morning coffee may have been as habitual as brushing your teeth. Such a simple item can add up. Is buying your lunch every day still feasible? Keep adjusting your budget until your income exceeds your output – with a bit leftover for savings. The alternative is a steady accumulation of unnecessary debt.

Analyze Your Accounts

How do your bank and credit accounts work? To be on top of your finances, you should know how much interest you are earning and if you are paying fees for not meeting the necessary minimum balance in your accounts? How much you are paying for your credit cards – especially how much interest. For a while, using cash as much as possible may help you keep track.

Meet With A Financial Planner

Incurring the expense of a financial advisor may save you money in the long run. Such an expert can help you see and get control of your entire financial picture. He or she can create a step-by-step plan to help you achieve both your short-term and long-term goals. This includes preparing for your retirement, unforeseen emergencies, as well as next week’s meals.

Handle Your Debt

Your financial advisor may be able to help you with your debts, or you might need more specialized expertise. Do you have a mortgage or an outstanding loan? Should you be refinancing? Should you pay the minimum amount each month or double that? A debt expert may help you get a mortgage at a lower rate of interest. Is consolidating your credit cards debt a good option? The answer to these questions can save you considerable money.

How Post-Divorce Prepared Are You?

Going through a divorce can be traumatic. You may not have taken the time to contemplate and plan for the “post” period. Now you are facing legal bills, other bills, and a huge headache.

The situation can become more problematic if your ex-spouse was the breadwinner and/or you did not work or keep a steady job during the marriage. You are facing your new beginning without a steady job and a regular income.

To help with immediate emergencies, check your life insurance. You may be able to borrow some funds to help get you or keep you on track. Determine if you are due a tax refund. Make certain you understand all the implications of your settlement agreement.

While you are scrutinizing your financial situation, be sure that all accounts that remain joint are immediately placed solely in your name.

Assess Your Goals

You surely have plans and goals. It may be setting up a college fund, purchasing a new car, or placing the children in a private school. Perhaps you’ve been dreaming about a fantasy vacation. There is every chance that the divorce has upended your goals. Do you have any idea how to make them happen now?

You may need to reprioritize. Get a used car instead of a new one. Send the kids to public school for the time being while you investigate scholarships. Ask grandparents to contribute to a college fund in lieu of other presents. Arrange for a luxurious staycation. It’s not that you need to change your goals, but you may have to achieve them differently than planned.

You Need An Income

To state the obvious, if living singly doesn’t cover all your expenses, you need more money. Consider the ways of earning funds on the side that do not interfere with your primary job. If you are a numbers person, look into freelance bookkeeping. Consider other latent talents you might have. Pet sitting can be relatively profitable.

If your financial future looks bleak, add to your education. Take online classes or become certified in your area of expertise. This will put you in a position to demand more money for your services. Don’t hesitate to ask the people you know if they are aware of any services you could be providing. If everyone loves your cooking, you might be able to cook and/or cater part-time if you are the baker in your group, contact bakeries about selling cakes on consignment.

Your Credit Is Important

Build a credit history that is in your name only. That will be crucial when you need a loan to purchase a house or a car. Get a credit card in your name or ask your financial advisor for other ways to boost your credit rating.

Conclusion

When you found the partner of your dreams, you undoubtedly never considered divorce. But the reality is, more than 50 percent of marriages get dissolved. Facing a new beginning means taking charge of your life and refusing to be a victim of circumstances. Your financial future is in your hands.

The legal process can get difficult, which is why we always recommend that you seek the assistance of counsel; or at least have a consultation. Schedule a consultation with one of our attorneys today to review the issues of your case, the legal options you may have, and certain rights that pertain to your unique situation.

Have more questions? Let us know by sending an email to: questions@legallotus.com and we will do our best to develop content to provide you with direction and insight!

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