Going through a divorce can be scary. Your life after will not be the same and it can feel overwhelming to think about adjusting to a new normal. Most people will find themselves in a completely new financial situation, which can have a major effect on their life. However, there are steps you can take to create stability in your finances for life after divorce.
What Steps Should You Take?
There are several ways you can plan for the future and create more stability and success in your finances after divorce including:
- Get organized and take inventory of your assets and expenses – having a good idea of your current financial situation can help you plan for any upcoming changes. Understanding your situation will put you in a better position to figure out what will happen during and after your divorce. It can also help you ensure you negotiate a fair divorce settlement.
- Open new accounts – if you and your soon-to-be-ex spouse share any accounts including a credit card, opening new ones sooner rather than later is a good idea. You may also want to check your credit score and check for debt.
- Update your estate plan – making sure your estate plan accurately reflects your new situation is important. Review your plan and update your beneficiaries.
- Plan for retirement – don’t forget to start planning for your retirement based on your new circumstances. Figure out how much money you should save per month or per year in order to retire comfortably without your spouse’s income.
- Make adjustments – after your divorce, there’s a good chance your household income will change. Be sure to plan for this and make any lifestyle adjustments to suit your new level of income.
These are just a few steps you may want to take to sort out your finances and plan for your life after divorce. These actions can help you move forward more positively, with less stress and confusion.