Your divorce is over, but the financial effects may last for years to come. Fortunately, knowledge is power, so learn how to rebuild your finances after your divorce.
Take steps to get back on track
If you are panicking because you lost your home or retirement, you need to take that energy and refocus. Yes, it is easier to say than to do, but do not waste more energy regretting lost opportunities. Follow these steps:
- Assess your new situation, and make lists of your expenses, assets, income and liabilities. Once you know where you stand, you can determine what bills are a priority and what you may need to cut to stay within your budget.
- Get a copy of your credit report, update it and fix mistakes.
- Create a budget to keep yourself out of debt while you are adjusting to one income.
- Update your accounts with the right information.
- Update your beneficiaries, write a new will and update life insurance policies.
- Get educated about being single and dealing with your finances, and spend 30 minutes a day reading or watching webinars to help you be more financially savvy.
- Get a team to help you get back on track. Talk to investment strategists you trust, an attorney experienced in estate planning, bankers or accountants.
- If you have children, you need to consider their needs in case you die before they reach majority, such as guardian, long-term care and more. It is a good idea to discuss this with your attorney.
Improve your finances
It might look bleak after the divorce, but with time and a plan, you can rebuild the financial stability you need to be comfortable and grow. A divorce is an upheaval and wastes valuable personal and financial resources, but it does not have to end your life. Speak to a family law attorney to discover your options moving forward and to tackle your to-do list.