Divorce is never an enjoyable experience to go through, but it is a common one. Nearly half of the couples in America get divorced at some point in their relationship. Depending on the length of a marriage, untying two lives that are bound together can be awfully messy.
The fact that getting a divorce can be expensive doesn’t make things any easier. There’s lawyers to pay, things to move, and it may be unclear how much money you’ll end up with at the end of the process.
No one wants to have to face financial woes on the other side of a divorce. But many frequently do. Read on, and we’ll walk you through how to survive divorce without going broke.
Take Inventory of What You Have
You should approach your divorce woes like you would approach any other problem. Getting organized and making yourself knowledgable will be your biggest asset in getting through these rough few months.
The first thing you should do is start a detailed breakdown of your finances. Where is your money at, in which institution, in what amount? Make a separate tab in an excel spreadsheet for each account you have open with money in it.
Include all pertinent information. This means including the name the account is under, as well as contact information for the institution itself. Keep a list of other assets that you have and what form they come in.
Make sure to properly evaluate the value of your assets and note how liquid they are.
Having one organized place where you can look over the entirety of your current financial situation can be a huge advantage when going into divorce proceedings. It can allow you to feel in control.
Finances can quickly become overwhelming when you feel like you don’t have a good grasp of the situation. Having a spreadsheet like this can be the best destresser you can have.
Start to Balance Your Budget
It will take some time to be able to adjust to life after divorce. But the adjustment to a new lifestyle and way of living will likely be necessary.
If you currently don’t keep a budget for your spending, this would be a good time to start. You’ll need to compare your spending to your new levels of cash flow. The worst thing you can do following a divorce is over-spend.
By breaking down a budget of your spending, you can see if you’ll need to pick up more hours at work, find new sources of income, or spend more conservatively while shopping. Your spending cannot and should not exceed the income that you have coming in.
This is a dangerous situation to be in, and a very easy one to fall into after being plunged into a new lifestyle. Make sure to balance your budget, and then commit to living by it.
Liquidate What You No Longer Need
Downsizing can be your best friend following a divorce. Previously, you’ve been shopping for two people or even more. Now, you may only have to think about yourself when it comes to some key life essentials.
For example, if you’ve been living in a larger house together, you probably don’t need that size home anymore. You could sell the house and split the equity with your former spouse, helping both of you get a new start financially.
It’s highly recommended that you learn more about splitting equity with your spouse. It can help you stop paying for things that you don’t need.
More expensive cars and other belongings that cost a lot to maintain could also be downsized in favor of better financial stability. You may have an emotional connection to these remnants of your former life, but it can financially and mentally healthy to let these things go.
Set Some Short-Term Goals
After setting yourself up for success, you can begin your journey back towards financial stability. This can a long and hard road, and you don’t need to be hard on yourself.
Instead of panicking about reaching the level of your pre-divorce finances immediately, you should try to set smaller goals for yourself. For example, simply try to save $1,000. Or try to cut your grocery budget into two.
Such small goals can be more managable and achievable. They can help empower and encourage you take on bigger goals as time goes by. And before you know it, you may have built back up to what your larger goal was in the first place.
Don’t Be Afraid to Ask for Help
Divorce can be an upsetting time socially as well as financially. Family and friends often get split in such proceedings, especially if the divorce was not amicable. But you need to have a system of support.
If you have people who love and care for you at your side, it can make the financial struggle of divorce easier. You can stay with friends when you need to, or ask for favors instead of paying for particular tasks.
If you have true friends and loved ones at your side, they will want to aid you through this difficult time. Don’t be afraid to reach out for help if you need it.
How to Survive Divorce in One Financial Piece
Divorce is challenging. In many ways, the months following a divorce can be one of the most challenging periods in our lives. That’s why it’s important to prepare financially for such a situation.
With the above advice, you now know better how to survive divorce and come out the other side in one piece. Soon, you’ll be flourishing once again. Need more lifestyle advice? Check out our blog for more tips and tricks.