Managing Your Finances After Divorce – Some Tips

While divorce itself can be quite a harrowing time in an individual’s life, adjusting to life separate from another person’s can also be quite challenging.  

Amongst all aspects of a post-divorce life, financial management stands out as the most difficult one, especially if you are leading a life with more limited finances than your married life. However, it is simple enough to take the reins on managing your finances with some well-thought out planning.

Did you just go through a divorce? You may be feeling both emotionally and financial overwhelmed. But divorce does not have to impact your stability. Focus on these guidelines to get your finances back on track:

Make A Personal Budget

Creating a budget is the primary step in improving your financial circumstances. Gather all statements of rent/mortgage, maintenance, utilities and other usual expenses, and analyse your income needs.

This will help you cut back on any unnecessary expenses, and create opportunities for more savings every month.

Adjust Your Standard Of Living

Know that you can no longer entertain all the lavish practices you did in the past. Where you had two pay checks to cover your expenses, you now have one.

Re-examine your spending habits, and limit them according to your means. Though the transition may be difficult, you will soon learn to overcome the change, and reach your financial goals much faster.

Decrease Debts, Increase Savings

It is wise to establish your financial security through paying off debts, without accumulating more, and expanding savings. A reliable, high-yield savings account can help build up your finances. It is safe to create an emergency fund as a backup for any unexpected expenses in the future.

Don’t Get Distracted

You may feel compelled to make investments in the hype of a moment as a means to generate some quick cash; don’t give in to the compulsion. Focus on the budget goals, and adhere to your current plan of action.

Accept Support

Given the emotional turmoil you just experienced, you may be on the defensive side when it comes to interacting with friends and family.

However, it is good to let yourself open up a little. If they are willing to lend a hand in managing your finances, accept the help. If there are support groups that assist individuals with post-divorce financial difficulties, go for it.

Your financial successes in the future depend on how well you deal with finances right after your divorce. No doubt you will have to tough it out in the beginning, but your efforts will pay off in the long run.

As professional divorce solicitors in UK, we offer extensive expertise in getting a legal separation or divorce. Our divorce solicitors will help you resolve all financial issues, including asset and property related insolvency. Email or call us at 020 3417 3700 to book an appointment.