Life after divorce is a lot like starting over, or at least it can feel that way. It can be a scary feeling knowing that new things are ahead – or it can be looked at as an exciting, new beginning. Either way, a part of this starting over period includes the topic of finances, which may include readjusting budgets, rebuilding a savings account, or planning on big purchases ahead such as a new home.
Finances are complicated and can be a burden when going through a divorce as well as after the divorce is final. One way to avoid financial issues due to a divorce is to have an experienced divorce attorney by one’s side during the divorce process. The experienced attorney will look out for one’s best interests which most definitely will include their finances. In addition to consulting with a divorce attorney, the below tips can help one avoid letting finances get the best of them and can help them recover financially from a divorce:
- Make a plan to tackle debt.
Before other financial goals can be met, making a plan to reduce debt is key. One should ensure their most important and immediate bills are paid first, while considering other options such as balance transfers to lower interest rates or doubling up on payments, if that is a possibility. The sooner debt is under control, the sooner one will be on their way to financial freedom.
- Meet with a trusted financial advisor.
Finding a trusted financial planner can be a smart move for someone who is not sure where to start when it comes to finances post-divorce. An experienced financial advisor will evaluate their client’s unique situation, discuss their goals, and crate a financial plan that helps them achieve those goals.
- Reevaluate the budget.
One’s budget or the way they spend money will likely change after the conclusion of the divorce. It is best for one to reevaluate their budget so they can be sure they are spending within the correct limits. They may find that they have to make minor adjustments to their budget, if at all, while others may have to rethink some bigger changes such as changing vehicles or their housing situation.
RELATED: Read about what happens to retirement funds during divorce.
- Build credit.
There are many spouses whom, after divorce, do not have any credit built up simply because their name was not on the mortgage or bills. If in this situation, one should do what they can to build credit, such as applying for a credit card, using it for small purchases, and paying it off each month. Building credit will be an important steppingstone to bigger things to come such as getting approved for a new home purchase.
Divorce can be a stressful process but does not have to leave you in a financial mess. We hope these tips will help you be on your way to feeling confident with your finances post-divorce and can help you achieve your goals so you can create a new, exciting start for you and your family.
For information about what our experienced attorneys at Wilder Mahood McKinley & Oglesby can do to help you in your divorce, contact us online or call our office in Pittsburgh, Pennsylvania, at 412-261-4040.
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