Can You Do It? Rebuilding Your Finances Post-Divorce
Although the emotional turmoil of divorcing from someone you loved and lived with for years could be immensely damaging, the potential hit to your finances could be equally. Building up your finances following your divorce could be quite scary and difficult, but is entirely possible. Start with the following.
Check Your Credit Rating
As you’re newly divorced, your credit history’s health would depend on the financial arrangements you had with your ex-spouse and whether you had joint assets and debts. Likewise, if you stayed at home and didn’t work or don’t have household finances under your name, this could affect your credit rating moving forward. Check your credit and see if you need to take some steps to fix it.
Take Stock of Your Finances
Once you’ve had some time to heal, you have to take inventory of your finances. Begin by calculating how much you’re worth at present, including your assets, debts, and income sources. If you have shared assets, include those as well. It’s a good idea to consult with a divorce lawyer and a financial advisor so you could get a more precise picture of your finances.
Make a Budget
Use the information you obtained from inventorying your finances to help you create a budget that would fit your life as a single individual. You must take into consideration your current standard of living, bills, any loans in your name, and health insurance. If applicable, divorce lawyers in Long Island say that child support and alimony payments should be included as well.
Although this is another reality you have to face post-divorce, it’s vital to be realistic as early as possible. Moreover, now that you’re living on only one income, it’s crucial that you have sufficient savings to tide you over when burdened with unexpected expenses and emergencies.
Getting divorced is all about ending some things and then rebuilding. Having a solid financial plan in place could help you feel more secure about the future. Take note however that these steps won’t magically change your finances overnight. You’ll have to work at it one step at a time. Seek help, whether from friends and family, or relevant professionals and you’ll eventually see that silver lining.