Now that the divorce is final, the reality of your situation starts to set in. Your financial future is up to you, and if you still have a family to look after, budgets can get tight. Luckily, there are several things you can do set the groundwork for a secure future.
Financial Assessment
Take a serious look at your financial situation. What assets do you have? Investments? Insurance? Decide where you need to make adjustments. Do you have day to day expenses covered? Is there money for savings? What about savings for children’s tuition and hobbies? Be brutally honest about what you can afford and what needs to change. If you received any lump sum distributions from your divorce, get financial advice about where you can put this money. You need an un-biased opinion of the best investment options available to you, and don’t be in a hurry to make a decision. Put the money in a savings account until you feel comfortable with your decision.
Making a Budget
Establish a budget and stick to it. Include long term items such as saving for college if children are involved. Do not assume your ex will be paying for any expenses and try to find a way to cover the expenses yourself. On this note, try not to openly blame or talk badly about a spouse due to new financial arrangements. Children love both their parents, and legal experts at http://coillaw.com/ recommend speaking calmly and neutrally about them after the divorce. If your contribution is not needed for some of the kid’s expenses, immediately place those funds in a savings account. Better to be prepared and not need it, than to be caught without necessary funds.
Investigate government programs. You may be eligible for them now when you weren’t before. Your situation has changed, and there are many programs out there designed to help get back on your feet. Maybe you need additional education or training for a higher paying job and can use tax incentives you now qualify for.
Financial Housekeeping
One of the first things you should do when your divorce is final, is to remove your name or your husband’s name from all joint accounts. This can help you protect yourself, and will be key to start building a financial footprint of your own. Address all accounts including:
- IRS Records
- Automobile related items: Registration, license, driver’s license, insurance
- Employer’s records
- Review beneficiaries
- Credit cards, Investment accounts
- Wills
Decide on the type of lifestyle you want. Remember, living on less money is not necessarily a bad thing. In many ways it can be a learning experience for you and your children. Strive to save as much as possible since you will be providing a buffer for those unexpected surprises, and giving yourself and your family peace of mind.
