5 Tips To Reclaim Your Financial Future After Divorce

5499899A divorce is one of the most expensive and important decisions a person will ever make with financial ramifications that could affect your life for decades.  

As soon as you realize divorce is inevitable, it’s time to start thinking about your financial future and working toward establishing a post-divorce budget.

Lisa C. Decker is a Certified Divorce Financial Analyst and author of the book “How to Divorce Your Spouse, Not Your Money.” Here are several tips from her on how guys can start to come up with a budget after divorce and begin to reclaim their financial future:

Don’t procrastinate

It’s sometimes overwhelming or intimidating to deal with the financial aspects of a divorce. It’s easy to just put it off until tomorrow, but then tomorrow turns into next week, which then turns into next month. Suddenly, years have passed and you still haven’t done any actual financial planning.

So the first step is to get started by coming up with financial goals. What are you trying to accomplish? What are your savings goals? What are you saving for?

What’s the fun of saving if you don’t have an idea of what you want to do with all that money? Do you want to pay off your mortgage? Maybe you’re saving for your child’s college education or for a vacation to Europe.

You need to determine what your goals are and create a budget with those goals in mind. That may take some outside help from someone like a financial advisor, or you may be able to find some help online, but having a budget is like having a roadmap you use to map the course of direction for your finances going forward.

Live within your means

We’ve all heard this saying, but it really is a struggle for a lot of folks.

Impulse buying has become a part of our culture, and it’s really important to manage those emotional purchasing decisions, especially after a divorce when you’re trying to regain your financial footing.

If you’re about to make a big purchase, stop and ask yourself if you can really afford it. Wait 24 or 48 hours to see if it still seems like a good idea to buy, and if so then make sure you know what your plan is to pay it off.

Also take time to research big purchasing decisions. Go online and make sure you’re getting the best deal possible.

Make savings automatic

It’s a good idea to make your savings automatic. Set up your account so that money is taken directly from your paycheck and sent to a savings account.

Essentially, you’re paying yourself in a way that avoids the temptation of using that income on something else. This is a lot easier than pulling the money from the bottom of the barrel and putting what’s left over into a savings account.

Plan for annual and unexpected expenses

Annual expenses like car and home-owner’s insurance tend to be easy to forget about and can significantly dent your budget.

Then there are the big-ticket expenses you don’t always expect but can’t avoid, like having to purchase a new car sooner than expected.

These types of expenses that we don’t see on a daily or monthly basis can be huge budget busters. Unfortunately, they’re also unavoidable, so you’ll want to give yourself a buffer when planning your budget so you’re not completely caught off-guard.

Be proactive

When it comes to managing your finances, you have to be a proactive partner rather than a passive participant.

You can’t just turn over your finances to someone else to handle for you. It’s incumbent on you to be involved with where your money is going. That means monitoring your spending and credit reports, understanding your investment strategies, and establishing long-term financial goals.

Lisa C. Decker is a Certified Divorce Financial Analyst and Real Estate Collaboration Specialist in Divorce. For more information on the services she offers, visit Divorce Money Matters.

End of Content Icon

Shawn Garrison is an Online Editor for Lexicon, focusing on subjects related to the legal services of customers, Cordell & Cordell and Cordell & Cordell UK. He has written countless pieces dealing with the unique child custody and divorce issues that men and fathers face. Through his work on CordellCordell.com, CordellCordell.co.uk, and DadsDivorce.com, Mr. Garrison has become an authority on the complexities of the legal experience and was a content creator for the YouTube series “Dad’s Divorce Live” and additional videos on both the Dad’s Divorce and Cordell & Cordell YouTube channels. Mr. Garrison has managed the sites of these customers, and fostered the creation of several of their features, including the Cordell & Cordell attorney and office pages, the Dad’s Divorce Newsletter, and the Cordell & Cordell newsletter.

One comment on “5 Tips To Reclaim Your Financial Future After Divorce

    I would have found this much more useful had it been post divorce with child support and maintenance factored into it. As such I can’t plan for anything except paying bills and paying support, there is no money left over for anything else.

Leave a Reply

Your email address will not be published. Required fields are marked *