One of the inevitable consequences of divorce is often some type of impact on your finances. If you are not careful, your divorce could substantially reduce your wealth.
Proactively addressing your situation and taking steps to prevent financial loss can help you keep control of your money.
Save your settlement
Depending on the dynamic of your marriage, transitioning to independence again could feel out of your comfort zone. If you previously relied on your spouse’s income to pay for necessities, the thought of taking over responsibility may seem overwhelming. As such, you may feel tempted to spend use your settlement to help pay the bills. However, this costly mistake can quickly deplete your financial savings down to nothing.
Contrarily, implement a post-divorce budget right away. Identify where the money comes in and where it goes out. Prioritize savings, even if your contributions start small. Avoid making large purchases while you regain your footing. Set personal financial goals and determine how you will accomplish them. When you receive your settlement, Money Crashers suggests that you refrain from dipping into it, particularly your retirement benefits. Rather, find out your options for rolling everything over into a personal retirement account.
Build a support team
Going through divorce alone can make you feel isolated. Dealing with the onslaught of emotions that often comes from ending a relationship may make it difficult to focus and make confident decisions. Building a support team is one thing you can consider to help you maintain control of your finances and maximize your money’s value. Individuals including an attorney, a financial advisor, a therapist, and your friends and family members can all contribute.
Taking your time to handle your personal affairs can help you avoid irrational decisions. Staying proactive and choosing to feel optimistic about your future may improve your ability to chip away at your goals so you can leverage your divorce to create a brighter future.