Breaking up with your spouse is never easy. You can tell just by looking into the thousands of songs and novels written about it. This problematic situation doesn’t only involve the wife and husband. It could also take an emotional toll on the children. If you’re on the brink of a divorce or are currently in the middle of it, you should try your very best to plan.
It would help if you thought about the parenting adjustments for the kids, dealing with your own emotions and thoughts, made plans for the future or retirement, and sorted out the separation details all at once. But there’s another critical thing to think of — your finances. Dealing with finances can be more challenging following a divorce, but it’s something you shouldn’t ignore. Continue reading to learn how you can rebuild your expenses after a divorce.
1. Figure out your assets
The first step is to determine the assets that belong to you, your ex-partner, and the ones you jointly own. The goal here is to move what you hold under your name. To do that, you’ll need to figure out how the assets were bought. Individual funds are purchased with personal money or credit card, and they’re easy to deal with.
It’s tricky to manage the joint purchases, including housing, cars, and other significant investments. A lawyer and the court can help in determining and processing the moving of assets. Such assets are beneficial for getting future financial aid and directly affect your net worth.
2. Build credit under your name
If you can’t build a good credit standing of your own during the marriage, this is the time to do it. Having a good credit score is essential when applying for a loan or buying or renting a house. For instance, before a reputable mortgage brokerage company assists you with your application, they can look at your credit standing to see how well you can pay a loan.
Plus, a good credit standing can help you get low-interest loans and benefits like no down payment. You can get a secured credit card if you can’t get a standard one and use it for small purchases. If you’re holding on to credit card accounts with your former spouse listed on them, request remove their name. This ensures they cannot use the funds anymore or use them to put you into debt.
3. Speak to a financial planner
Creating a new financial plan following a divorce can be a challenge., which is why having an expert to guide you is essential. A reliable financial planner can help you face your actual financial situation and determine future goals. They can guide you in knowing your new set of monthly expenses and see the actual numbers on paper.
Managing finances while still processing your emotions after the separation can be overwhelming. A financial planner can help you with that. Aside from financial accounts and saving goals, they can also give you ideas and tips in managing your taxes with a newly single status.
4. Consider downsizing
Depending on your situation, like the number of kids, downsizing your home can be a good decision. For example, moving from a three-bedroom house to a one-bedroom property or a studio unit can significantly reduce your living expenses. It can help you save more or pay off any debt much faster.
Find a place that is just enough for you or your kids. Downsizing doesn’t just relate to housing but also car payments. If you and your ex-partner have a car with an expensive monthly fee, you can agree to sell it. Find something cheaper or a car loan with a lower interest rate.
5. Choose your support squad
The last thing you need is a good support squad. Choose the people who will support you genuinely. Many individuals tend to lose a lot of relationships when they go through the pain of the divorce. Having a sound support system can help you deal with the negative emotions and thoughts and how you can start a new life.
Don’t be afraid to seek help from your family and friends, especially when making decisions. Opinions from people who aren’t in deep pain can give you a fresh perspective. If there’s no relative or friend you can trust, you can consider joining a divorce support group or finding a therapist to talk to.
The emotions caused by a divorce can be hard to overcome. But while it’s healthy to first deal with your health and wellbeing, know that money is critical for you to survive after the separation. Be financially savvy for you and your kids and your future as well. Financial health is essential for independence, so prioritize it, too.