Divorce can bring significant changes, especially when it comes to finances.
Adjusting to a new financial reality can be challenging, but with the right strategies, it is possible to recover and thrive.
Understand your financial situation
If you received one of the 989,518 divorces in 2022 or the hundreds of thousands in 2023, the first step in recovering financially after a divorce is to fully understand your financial situation. Calculate your income, expenses, assets and debts. Create a budget to track your spending and identify areas where you can make cuts or adjustments.
Update your financial accounts
Update your financial accounts and their beneficiaries to reflect your new status. This includes bank accounts, investment accounts, retirement accounts and insurance policies.
Consider your housing options
Housing is often one of the most significant expenses for individuals after a divorce. Consider your housing options and find a living situation that is affordable and meets your needs. This may involve downsizing, renting instead of owning or exploring alternative housing arrangements.
Focus on building your credit
Divorce can have an impact on your credit score, especially if you shared accounts with your ex-spouse. Build or rebuild your credit by paying bills on time, keeping credit balances low and monitoring your credit report.
Set financial goals
Setting financial goals can help you stay focused and motivated as you work towards recovery. Whether you need to build an emergency fund, pay off debt or save for a major purchase, clear goals can guide your financial decisions and keep you on track.
Navigating the financial aftermath of a divorce is not something you have to do alone. Surround yourself with people who can offer encouragement and help you stay accountable to your financial goals.
