You probably already know that getting a divorce comes with big changes. Many people are particularly concerned about their finances after a divorce. It is a costly process and there’s a good chance you will be in a new financial situation after your divorce is finalized. These changes can be scary and you might not know what to expect.
However, life after divorce does not have to be intimidating. You may need to make some changes, but ultimately, you can bounce back.
What might happen to your finances after divorce?
Between the high costs of the divorce itself and a loss of a primary or additional income, there are a variety of potential outcomes you could face after your divorce. People often find themselves in less-than-ideal financial situations.
You may need to seek spousal or child support to maintain your life and your children's lives. Sometimes people lose access to health insurance, if their spouse’s employer provided it. You may need to find a new house or living situation.
These are just a few of the potential financial results of a divorce. These changes can cause harsh financial distress. Fortunately, there are tips you can use to lessen their impact.
How can you figure it out?
If you find yourself in a new financial situation, there are steps you can take to adjust and adapt. A few ways you can navigate your new finances are:
- Keep a financial journal – this can help you figure out your new finances and document where you need to move or adjust your spending habits
- Set small savings goals – putting your finances into perspective and setting smaller, more attainable goals can make the situation seem less intimidating
- Decrease or stop unnecessary spending – while you may have had the extra money to spend on new clothes or tech, decreasing discretionary spending can help you adjust to your new situation
- Create new income – starting a side hustle is a good way for some people to earn cash on the side, while not completely upheaving their entire life
Divorce is stressful and difficult. Your life, and finances, will most likely change and not always for the better. But there are ways to work through it and come out on top.