Going through divorce is not only about learning how to live outside of a relationship, as it’s a process of getting to know yourself again. One area that will change drastically is your finances. Without a partner, you have different budgetary needs and potentially even more freedom than you did when you were married. There may, however, be a lot of additional expenses to account for such as child support, alimony and legal fees. As you recoup from the end of your marriage and transition into the next phase of your life, here are some suggestions on how to take care of your finances.
Start Saving ASAP
As a newly single person, you will have to plan for your own care and emergencies. This is one of the most effective tips to get through divorce and its aftermath. Many married couples have a joint account, so this could be the first time in a while that you’ve had to handle finances entirely on your own. Setting up a savings account will allow you to put money away routinely and plan ahead for any urgent needs. It could be veterinary bills, an overdrawn account or an emergency car repair. Whatever comes your way, having some financial cushioning to soften the blow is always a relief.
Lower Your Financial Obligations
Monthly premiums for insurance can cost more for a married person, and there’s no need to pay for coverage that no longer suits you. If you had your spouse on a life insurance policy, consider selling it altogether rather than just removing them as a beneficiary. This helpful guide can tell you everything you need to know about selling your life insurance policy through a life settlement. Life settlements can give you a lump sum of cash for your policy, which you can then put toward savings or paying down debts you incurred during the divorce. Many recently divorced people sell their life insurance so they can put the money toward rebuilding their own lives.
Don’t Be Afraid to Downsize for More Savings
Living back home or with a roommate after divorce can actually be a great financial move. It may feel like you’re taking a huge step back, but you are really putting yourself in a safer position to save more money for later. These arrangements are temporary, and they allow you to stockpile your discretionary income so you can live better later. You can also look into selling possessions you acquired during marriage that are no longer necessary. Maybe you don’t need two cars in your name, or perhaps you trade in your vehicle for a more affordable, fuel-efficient model. Be open to change, even if some of it requires scaling down.
Think About Your Career Options
Without a spouse, you may have more opportunity to pursue jobs than you did before. When you’re married and have children, it’s not easy to pack up and move whenever you get a good job offer. While you may still want to live locally if you have kids, you can still think about moving a bit further away to pursue more work. Now that you are going through a period of transition, it may even be wise to consider how your current job suits your ideal future. Do you want to stay in the same position, or have you outgrown it? Expanding your horizons by taking new skills classes, earnings certifications or even getting another degree can also raise your earning potential.
Published by HOLR Magazine