How to manage your finances after divorce
After a divorce, one of the steps to take into account to return to the typical rhythm of life is to rebuild the financial situation. Facing a living with personal expenses, after the commitments made jointly in the marriage, can destabilize the accounting of one or both of the ex-spouses.
Also, in some cases, divorce can be an economic disaster, because when a couple separates, disputes quickly turn to money so that even the most ‘friendly’ separations turn into real battles.
It is important to agree who will take care of the debts that were paid between both spouses. For this reason, pay special attention to covered credit cards, informal loans, or mortgage payments, and determine who assumes each credit.
If there are children involved, remember that this generates some commitments in addition to emotional, monetary, so it must be established who will pay for the child’s education, health, food, clothing, and other extra expenses that arise.
Release your ex from benefits
This literally said. Maybe while you were married to the other person, they turned out to be the beneficiary of all your products: health insurance, life insurance, and even beneficiary of your will.
Remember to talk to your policy broker or attorney and separate your ex from any current insurance coverage you have and possible adjustments to it. However, if you have children, know that your responsibilities to them continue, and you may need additional insurance.
Also, untie all financial aid, such as credit cards with extensions, shared services such as membership in a club, gym, mobile phone with covered plans, and more. Otherwise, your liability for your ex-spouse’s accounts will continue.
Be clear on paperwork costs
Many analysts assure that many couples, in order not to have problems in the fair distribution of goods in common, incur in the sale of these to divide what is obtained from this sale. Keep in mind that everything to do with negotiations involves some documentation, which also takes money and time. Adjust this from the beginning.
Make it clear who will be responsible for these expenses and who will take the time to make the sale or hire someone to take care of it, for which the person responsible for the payment must also be determined. Do not forget what corresponds to taxes, because even if they decide to leave the common property, some such as houses or apartments need to be up to date with the services and fees that exist on them.
Budgeting and prioritizing expenses
When you get out of a divorce, it is clear that you should not incur new debts. At least not until you gain stability. So make a list of everything you need and identify what real needs are and what are likes.
You will be surprised to discover that many things that were acquired in marriage were objects or services that you really did not need, but that your partner liked.
Knowing how much you have and what you need, you can set your monthly budget. Most of it will likely be spent at first, but with discipline, in a short time, you will be able to balance your financial situation.
Start a savings plan
Although it may seem impossible at first, starting a savings plan is a useful tool to consolidate financial stability. To do this, you must allocate a percentage of your budget for savings.
At first, and according to your financial situation, it may be a lower percentage, but you should commit to increasing it as time goes on. This amount will allow you to deal with any unforeseen and medium and long-term solvency or allocate it to larger projects.
Avoid making significant investments like buying a new house or buying a new car, as long as you are not financially firm to do so.
A divorce can change everything in the lives of the former partners. Finances are among the most affected things after a divorce. But, you can get through that by using the divorce budgeting tips from above.