Adjusting to life post-divorce can be difficult on many different levels. You have to find a way to heal from the emotional trauma that you have experienced, and you’ll have to figure out how to navigate the financial realities of your situation. That’s all easier said than done, of course, but there are steps that you can take to position yourself for post-divorce success. Let’s look at one of the biggest actions you can take to secure your financial interests post-marriage dissolution: creating a budget.
Creating an effective post-divorce budget
After your marriage dissolution is finalized, it’s going to be tough to adjust to your new financial situation. After all, you’re probably going from two incomes to one, and your savings may be drastically reduced. That’s why budgeting post-divorce is crucial to ensuring that you remain financially stable. Here are some things to consider as you engage in that budgeting process:
- Calculate your income: You’ll want to start by clarifying the amount of income that you’re going to have coming in on a monthly basis. While this will include the wages that you earn at your job, it might also include any child support or alimony that you receive.
- Identify expenses tied to your needs: Once you know how much money you’re going to have coming in on a monthly basis, you should calculate your expenses tied to necessities. This includes housing costs, groceries, utilities and payments made on car loans. Remember, these are necessities that you’re calculating, so these are expenses that you’re unlikely to escape.
- Look at your discretionary spending: Your remaining expenses are going to be discretionary in nature. This is where you’re going to be able to cut costs and make your budget work for you. You’ll need to be honest with yourself here. We know it can be painful to do, but reigning in discretionary spending is often the best way to find financial stability post-divorce.
- Try living below your means: If your savings were depleted by your divorce, you probably want to find a way to rebuild those funds. One way to do so is by living below your means. So, even though housing expenses and a car payment may be necessities, it might be worth considering downsizing or getting a less expensive car so that you can save money.
- Consider generating extra income: If you need extra money or just want some extra spending cash, you might want to look for some ways to generate additional income. You might be able to find a job in the gig economy or sell off some assets that you don’t need. You can get creative here and use your talents to your advantage.
- Speak with a financial professional: If you feel like your financial standing was rocked by your divorce, you might want to consider discussing your circumstances with a financial planner who can help get you back on the right path. They may even be able to help you with your budgeting needs.
Using legal strategies to protect your financial interests
One of the best ways to position yourself for financial success post-divorce is to take an aggressive approach during your marriage dissolution. This means zealously advocating for the share of the marital estate that you deserve and fighting for spousal support and child support, if warranted.
We know that you, like others, may be averse to confrontation, but that’s why legal teams like ours are here to help. If you think that you could benefit from legal representation in your divorce case so that you can set yourself up for success in the next chapter of your life, now is the time to discuss your situation with an attorney of your choosing.