Post-divorce finances: What you need to know
A divorce is a major, life-changing event. While many people are focused during this time on the change in their relationship status and any family issues, it’s also important to understand that your financial situations will also likely be undergoing significant changes. Learning how to adjust to what your budget and finances look like after divorce is crucial to getting back on your feet.
One of the first things to understand is that life will be different. If you’re a single parent, it can be exhausting just to keep up with the day-to-day and work one job. Divorce often leads people to reexamine many parts of their lives. You may be considering going back to school, moving, a career change or even picking up a second job to make ends meet or boost your savings.
Remember that you are only one person and can only tackle so much. Doing too much will just add more stress to the situation and can quickly lead to burnout. Start small and add things in one at a time as you feel you are able. Take the time you need to adjust to living on one income or figuring out how to balance managing the household with working full time.
It’s also a good idea to take stock of your finances as soon as you realize you’re heading toward divorce and be brutally honest about your situation. If you’re debts and bills are going to be more than your income is now, it’s important to take action instead of pretending the numbers will magically equal out. You may also want to talk with a lawyer about how assets will be divided and any spousal or child support.
Source: Money Sense, “Picking up the pieces: Retirement after divorce,” Julie Cazzin, accessed Sep. 01, 2015
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