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How can you financially prepare yourself for post-divorce life?

On Behalf of | Apr 17, 2023 | Divorce

Divorce is going to reshape how you live your life. That’s a daunting thought, but it’s also reality. It’s okay to feel a little scared or uncertain about your future, but you shouldn’t let it paralyze you into inaction. Instead, if you want to establish the strongest post-divorce life possible, then you need to be proactive in protecting your interests and planning for your future.

How do you do that?

One way is to carefully think through your financial standing once your marriage is dissolved. To help you do that, consider the following:

  • Your income: If you and your spouse both worked during your marriage, then your household income is suddenly and significantly going to drop. You’ll want to make sure you’re being realistic about how much money is going to be coming in once you start the next chapter of your life. You might also want to consider whether there are ways to increase your income, if you’re worried about having the resources that you need.
  • Your housing expenses: A lot of people want to fight for the family home because it carries a lot of economic and sentimental value. But maintaining the family residence on your own might be too much for you to handle. After all, you’ll be responsible not only for the mortgage, but also for any upkeep that may be needed. Therefore, now is a good time to think about whether alternative and more cost-efficient housing options are appropriate.
  • Your discretionary spending: Given the decrease you’ll likely see in your income in conjunction with your increased expenses, you’re probably going to have less money left over for discretionary spending. To make sure that you’re able to adequately adjust to that change, it might be helpful for you to create an honest budget and stick to it as faithfully as possible.
  • Understand your assets: Money in the bank is important, but it isn’t everything. You’ll also want to think through your other assets to try to position yourself as strongly as possible in the event that you face an emergency, or if you want to retire. Therefore, take a look at your insurance policies, your retirement accounts, and your business interests so that you know where you really stand.

Don’t overlook the value of the divorce process

Preparing for the realities of post-divorce life can be stressful. But you might be able to set yourself on more solid footing by properly advocating for yourself during divorce proceedings. During the property division process, for example, you might be able to secure the financial resources that you need to be stable post-divorce, whether that means acquiring your fair share of marital assets or securing spousal support.

Just make sure that you’re being comprehensive here so that you’re not missing out on any opportunities to better protect your future.

Develop the strategy that’s right for you

There are a lot of different ways to approach your divorce. You need to find the strategy that works best for you. You might find that thought to be overwhelming, especially if you’re still dealing with the emotional fallout of your marriage’s end.

But you don’t have to figure everything out on your own. Instead, you can surround yourself with professionals who are here to work for you.