fbpx
  • Search
Content • Community • Compassion
Woman Doing Finances at Home on Smart Phone

Tips to Start Over Financially after Divorce

Your monthly budget may not be the same as it was before, and you need to come up with a new budget.

Divorce is more than a separation of two people in a relationship—it involves more financial concerns than one might think! You likely endured the long-lasting battle of distributing assets, debts, and bills. Once it’s over, you might end up with more financial problems than you had during your marriage. That’s precisely why it can be overwhelming if you do not know how to start over financially after divorce.

However, we can help you get started with your new financial journey by providing tips. If you are facing problems due to single income or lack of ways to pay off debt, these tips may help you change the course of your life!

Tips on How to Start Over Financially after Divorce

1.      Create a New Monthly Budget

While your household expenses may have been manageable while you were married, it’s a whole new world after a divorce. Your monthly budget may not be the same as it was before, and you need to come up with a new budget that can support your monthly expenses. To start with a new monthly budget, you need to jot down your income and expenses and then work on balancing the two.

He knows exactly where his money goes

2.      Match Your Expenses with the Income

Lowering your expenses is crucial for your new budget, especially if you are new to surviving financially after divorce. Once you realize that the income is not the same as before (assuming there were two wage earners in the home), you can figure out what expenses can be eliminated or reduced. This way you can make room for the expenses you actually need, such as your home mortgage or rent and car payment. It’s not difficult to find the expenses you need to reduce—simply check your bank and credit card statements for the past few months and highlight transactions that were not necessities.

3.      Get the Full Financial Picture

To create a new budget for surviving financially after divorce, you need to calculate your net worth. It’s the measure of the difference between your assets and liabilities. It might help if you had been tracking your finances before the divorce, so you’ll know the before-after situation once you calculate your new net worth. If you haven’t been tracking, that’s fine too—as long as you have your post-divorce income and expenses in front of you.

…prioritize building a savings account as part of your new financial goals.

4.      Create an Emergency Fund

Your divorce may have wiped out some or all of your savings, and the new reality requires you to have a different emergency fund. Therefore, prioritize building a savings account as part of your new financial goals. It can help you put your mind at ease about your financial situation and minimize your stress. A good way to build an emergency fund is to keep 3-6 months of expenses in your account (reserves).  This may take time to build, so start off small and try to put as much as you can into your reserve fund!

5.      Formalize a Plan for Debt Payoff

It may be your old student loan or credit card debt you took during the divorce. You should create a plan to start paying down your debts, when feasible. With new expenses coming your way and a paired-down income, you may not be able to pay off the debt quickly; however, create a plan now to help you stay on track! You can search online for different ideas on debt payoff methods and shortlist those that may suit your financial situation.

6.      Rebuild Your Credit

Your credit might have taken a hit after the divorce, so invest your time and efforts into building a good credit score that can benefit you in the future. Be sure to make your monthly payments on time and manage your credit utilization at or below 30% to increase your credit over time.

Making sure her rainy days are covered

Summary

It can be difficult at first, but eventually, you can learn how to start over financially after divorce. Make sure you don’t get discouraged in the face of minor setbacks and let your perseverance guide you through the financial limitations. You should not be afraid to experiment with different methods to improve your financial situation, pay down debt, create an emergency fund, and improve your credit score.

little bird

Content, Community, Compassion and Gift Registry for the Newly Uncoupled

Content, Community, Compassion and Gift Registry for the Newly Uncoupled
Read More
Content, Community, Compassion and Gift Registry for the Newly Uncoupled

7 Tips from the Single Mom’s Parenting Handbook

If you’re struggling as a single mother after you’ve separated from your partner, read this…
Read More
7 Tips from the Single Mom’s Parenting Handbook

The Importance of Communicating with Your Ex

Communicating with your ex can be tricky with or without kids. Here are some reasons…
Read More
The Importance of Communicating with Your Ex

6 Tips from the Single Dad’s Parenting Handbook

Don’t let a divorce come in the way of you being the best dad ever….
Read More
6 Tips from the Single Dad’s Parenting Handbook

Co-parenting: How To Make It Work!

Co-parenting can be quite tough but if we are able to find a balance, it…
Read More
Co-parenting: How To Make It Work!

Life After Divorce or a Split: How to Create a Fresh Start?

Life after divorce or breakup should not be the end of everything good. Learn how…
Read More
Life After Divorce or a Split: How to Create a Fresh Start?

Breaking News About Your Break-Up

Did you recently part ways with your partner don’t know how to inform you friends…
Read More
Breaking News About Your Break-Up

How to Mend Your Heart

Learning how to mend a broken heart doesn’t come easily after a split. Here are…
Read More
How to Mend Your Heart

The Best Tips for Coping with Divorce or Separation

Uncoupling can take a toll on your emotional and mental health. Learn how to move…
Read More
The Best Tips for Coping with Divorce or Separation

Splits the second time around, Step Families: Making Things Work for the Kids

Wondering how to divorce a blended family? Here are some practical steps to make the…
Read More
Splits the second time around, Step Families: Making Things Work for the Kids

Emotional Stages of Divorce (& Uncoupling)

Life after divorce is not easy. Yet, acceptance and relief will comfort you once the…
Read More
Emotional Stages of Divorce (& Uncoupling)

How Divorce Affects your Pet(s)?

Wondering how divorce affects your pet (s)?  Prepare yourself for custody battles, separation anxiety, and…
Read More
How Divorce Affects your Pet(s)?

Dear CeCe – Is My Therapist Normal?

Dear CeCe, I have been seeing a therapist to work at getting on with my…
Read More
Dear CeCe – Is My Therapist Normal?

Rom-Coms – Good, Bad or Indifferent on Our Relationship Expectations

Watching rom coms can effect how we measure our romantic relationships
Read More
Rom-Coms – Good, Bad or Indifferent on Our Relationship Expectations

7 Things to Consider Before Getting Back with an Ex

Tips for understanding your motives and how to make it work.
Read More
7 Things to Consider Before Getting Back with an Ex

Dear CeCe – Not Sure He’s a Match for Me

Dear CeCe, I’ve been divorced for over 3 years and have just gone on my…
Read More
Dear CeCe – Not Sure He’s a Match for Me

Dealing with Post Separation Loneliness

Dealing with Post Separation Loneliness. Ways to cope and connect for those newly separated.
Read More
Dealing with Post Separation Loneliness

Dear CeCe – Their Mom is Breaking All the Rules

Dear CeCe, Before our separation, my ex and I kept the kids on a pretty…
Read More
Dear CeCe – Their Mom is Breaking All the Rules

Dear CeCe – My Ex Isn’t Acting Like a Dad

Dear CeCe, My ex and I split up over a year ago. He paid child…
Read More
Dear CeCe – My Ex Isn’t Acting Like a Dad

Starting Over in the Same Bedroom – Time for a Refresh

Get rid of the old memories by making quick changes in your bedroom.
Read More
Starting Over in the Same Bedroom – Time for a Refresh

Dear CeCe – Not Ready Yet

Dear CeCe, I’ve been dating a man for about month now – maybe 6 or…
Read More
Dear CeCe – Not Ready Yet

Healing Music (Part 2) –Songs to Help You Move on From Your Ex

Releasing negative emotions through powerful moving on songs helps.
Read More
Healing Music (Part 2) –Songs to Help You Move on From Your Ex

close
Splitvil Little Bird

Subscribe to Splitsvil.net!

Get weekly notifications
of Splitsvil's latest posts!

We don’t spam!
Unsubscribe anytime.

Written by
Robin & Heather
View all articles

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Written by Robin & Heather

Subscribe to Our Newsletter

Splitvil Little Bird

Subscribe to Splitsvil.net!

Get weekly notifications of
Splitsvil's latest posts!

We don’t spam!
Unsubscribe anytime.

%d bloggers like this: