How to Build Back your Financial Health After A Divorce
From attorney’s fees to court costs to spousal and child support, divorce can certainly accrue quite a large price tag. While these costs may seem daunting, and it may feel that your finances may never recover, that is not the case. Follow these steps to rebuild your financial health and credit score.
Assess Your New Financial State
Once your divorce is finalized, take an overall assessment of your current finances at this point in time. Review all of your assets and debts to know exactly where you stand. Note your most current income, any debts you may have, and other relevant fiscal data. Being up to date on how much you have, how much you are earning, and what you owe will prepare you for the next step to financial wellbeing.
Create a Budget and Stick To It
At the end of the day, your expenses should never outweigh your expenditures. While this idea is not a new concept, it is important to keep in mind. While married, it is easy to get into a routine and habit of not keeping an eye on your finances. Now that you are independent, your expenses and income may be affected by divorce. For example, you may have a new or higher cost of living, utilities, and even spousal or child support as new expenses.
Examine Existing Accounts
When you are part of a marriage, many accounts become joined or shared. Now that you are separated, go through all of your accounts at financial institutions to ensure only the correct account holder’s names are reflected on the account and your previous spouse has their access revoked. Make any other changes, such as removing their beneficiary status on an account. Do not forget to change usernames, passwords, PIN numbers, and other account access information following a divorce as soon as possible.
The post-divorce road to recovery is not always a smooth one, especially when you factor in the financial chaos this event can create. However, staying on top of your finances and being responsible and realistic can help get you back to putting your best financial foot forward. If you have any questions on restoring your financial wellbeing following a divorce, our team of licensed family lawyers can help. Give us a call today!