Essential Tips for Financial Planning After a Divorce

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Readjusting to life after a divorce is never easy, especially where finances are concerned. Depending on the specifics of your divorce, you may have to reprioritize what money you have left or even figure out how to completely start over from scratch. No matter where divorce has left you, it is important that you continue to look forward and ensure that you financial future is sorted out and secure.

Know Where You Stand

If you are going to be maintaining control of your financial accounts then it is important to ensure that they get properly updated. As tedious as it may seem you need to take the time to update your banks and creditors to your newly divorced status and make sure they have all of your current address and contact information.

Check on Your Credit

Depending on your joint account management your personal credit can be greatly impacted during a divorce. It is likely that in order to forge ahead financially you are going to be required to reestablish your financial foundation by fine-tuning your credit. Take the time to get a copy of your credit reports and to review them carefully. Make sure that you know what financial responsibilities you are still responsible for and make a plan to see that they are taken care of. Don’t max out the credit cards that you still have and dig yourself into debt out of despair.

Consider Downsizing

Deciding to move can be a very difficult and emotional decision to make, however if your budget is already tight then moving into a less expensive home may be a good option to consider. Trying to maintain the family home for the sake of your children, or even just for yourself, may be an endeavor that is too great to take on with only one income. Instead of risking getting yourself into debt or more financial trouble it may be wise to approach it as an investment asset and make the decision from the context as opposed to the emotional one.

Plan Your Career

If you have been out of workforce for a long period of time then it may be wise to begin planning for a career before your divorce is finalized. Getting yourself prepared ahead of time will make the adjustment easier both mentally and financially when the time comes for you to jump back in. It’ll also take away some of that added stress and even give you a confidence boost. Work is also a great place for you to meet to new and begin to be social again.

Life during and after a divorce can be especially difficult. By taking the steps to get your finances under control now you will be able to get back on track much sooner. This will also go a long way towards giving yourself the peace of mind you need to assure that you will be fine financially and therefore capable of moving forward.

 

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