Going through a divorce feels like riding an emotional and financial roller coaster. Beyond the obvious costs of lawyers and court fees, you’re suddenly faced with managing household expenses all by yourself. It’s a lot to handle, but you’re not alone in this journey.
Many women find themselves struggling with leftover bills after divorce – from credit card payments to car loans and mortgages that seemed manageable in a two-income household. While you can definitely boost your earning power, it takes time to get there, especially if you’ve been focusing on taking care of your home and children.
Don’t worry – taking control of your money situation isn’t as scary as it might seem, but it’s important to start taking control of your money right away. Here are 5 tips for securing your finances if you’re getting divorced:
- Create a budget that actually works. Think of a budget as your financial GPS – it shows exactly where your money is coming from and where it’s going. Start by tracking everything you spend for a month, even those small coffee runs or Target trips. You might be surprised at what you discover! Break your expenses into categories like “Must-Haves” (rent, utilities, groceries) and “Nice-to-Haves” (entertainment, shopping). Remember, your budget needs to reflect your real life – if you love getting your nails done monthly, include it. The key is finding a balance between necessary expenses and things that bring you joy while staying within your means.
- Keep all financial records organized, so that you can easily access important documents when needed. You never know when you might need a copy of an insurance policy or a tax return. Whether you keep your records on paper or on your computer, using file folders for the major categories of documents is one simple step toward greater organization, Think about about making folders for bank accounts, credit cards, investments, insurance policies, house documents, car documents, medical information, and children’s school records. Consider scanning everything and keeping digital copies in a secure cloud storage service – this way, you’ll have access to them even if the physical copies get lost. When your lawyer asks for that insurance policy from two years ago, you’ll look like a pro having it ready in seconds!
- Team up with a financial advisor or money coach. Working with a professional makes it easier! Just make sure the person you choose has strong experience with divorce, because there are some special issues when you’re getting divorced. Start to create a long-term money plan that will help you secure your finances. Issues that you might need to work on right away include: how to divide the retirement accounts fairly, whether keeping the house makes financial sense, how to invest any settlement money wisely, planning for your children’s future education, and setting up your own retirement plan.
- Set up an emergency savings fund. Think of it as your safety net in case of any unexpected expenses. Even if you don’t have a lot of extra money each month, setting a little bit aside can help when there’s that auto repair or new school fee that pops up. The money can add up fast… even $25 a week means you’ll have $1,300 saved by the end of the year! adds up to $1,300 in a year! Some creative ways to build your emergency fund might include selling items you no longer need, picking up a side gig like pet sitting or online tutoring, saving your tax refund, or cutting one luxury expense and redirecting that money to savings.
- Chart your path toward financial independence. Being financially independent means having control over your own destiny. Start building your career or business now, even if you’re going to be receiving child support or alimony. You need an income source of your own that is not controlled by your ex. You never know when support payments could stop, so if you have your own income, you’ll be in a better position in case the support payments are cut off. Think of support payments like training wheels… helpful for now, but not your forever plan. By building your own income stream, you’re creating security that no one can take away from you.
Ready to take control? Download our comprehensive Divorce Financial Checklist to make sure you’re covering all your bases. It will get you on the right path with all the financial documents you need to think about gathering for your divorce.
Remember: This journey might feel overwhelming now, but taking these steps one at a time will help you build a strong financial future for yourself and your children. You’ve got this!
