How to Financially Recover from a Divorce

Divorce can knock the wind out of your sails, both emotionally and financially. You may feel like you’ve been tossed into a sea of financial uncertainty. But you’re not alone. Having the right game plan and the guidance of an experienced family law attorney can make all the difference.

Prioritize Your Immediate Expenses

After a divorce, your financial circumstances will shift drastically. Assess your current income and expenditures, prioritizing necessities like rent, utilities, and childcare. Strip down your budget to the basics and make a plan for the coming months.

Get Professional Legal Advice

Consulting a family law attorney who specializes in divorce can provide you with valuable advice on property division and alimony. An attorney can help you navigate the complex laws that come into play during a divorce, which can ultimately save you money in the long run.

Liquidate Assets If Necessary

Sometimes it may be necessary to sell off assets like properties or vehicles to maintain liquidity. If you do, make sure to do it under legal advice to avoid any pitfalls, especially if the assets are shared.

Revisit Your Credit

Your credit score might take a hit after a divorce, particularly if there were joint accounts involved. Work on building up your credit by paying off debts and maintaining good financial habits.

Restructure Investment and Retirement Plans

Retirement accounts and other long-term financial plans that were built during the marriage will need to be reconsidered. Consult a financial advisor alongside your attorney to make sure you’re making wise investment choices for your new life.

Additionally, if alimony or child support is part of your divorce settlement, these monthly payments can impact your future financial planning. Don’t underestimate their effect on your ability to save for retirement. Speak with your attorney about how to incorporate these new financial responsibilities into your investment strategies, safeguarding your golden years.

Establish New Financial Goals

Financial planning post-divorce can feel like a daunting task, but it’s a necessary one. Establish new financial goals that align with your new life circumstances. Remember, you’re not just planning for yourself; if you have children, their financial well-being should be a consideration as well.

Plan for Taxes

Divorce impacts your tax status. Work with a tax advisor to understand the implications of your new marital status, especially concerning deductions and liabilities.

The Benefit of an Emergency Fund

Having an emergency fund is even more critical after a divorce. Aim to have at least three to six months’ worth of living expenses saved up. It acts as a financial cushion and can help you deal with unexpected expenses.

Update Estate Plans

After a divorce, update your will, beneficiaries, and other estate plans. It’s a detail that’s often overlooked but can have significant implications for your financial future.

Conclusion

Divorce is a monumental life event that necessitates significant financial adjustments. Life’s thrown you a curveball. With everything on your plate, the last thing you need is financial instability. While it’s easier said than done, making sound money moves with the advice of a family law attorney can help you rebuild. It’s all about taking it one step at a time.