To survive a divorce you may need helpful financial advice that can limit or reduce problems while planning for the future.
For some, the debris may take the form of financial woes. Divorce judges often divide cumulative marital debt, even if compounded by one spouse more than the other. This can leave one or both spouses struggling under a mountain of financial pressure. If you are divorced and struggling to remake your budget, here are a few suggestions:
1. Be sure your attorney competently defends your interests. While you don't want to take advantage of an ex-spouse, neither do you want to lose your shirt. Discuss your concerns and needs with the attorney before the proceedings. Afterward, arrange for ongoing legal representation to cover future contingencies, if any, including child support, sale of the residence, children's education, and alimony. These costs can increase over time, requiring additional petitions to the court until the final sale of joint property or children reach adulthood.
2. Work out a reasonable budget balancing income and expenses. Include short-term savings for emergencies and long-term planning for larger expenditures, like a down payment on your next car or replacing the furnace. See a financial adviser if you have concerns about making ends meet or anticipate increased or additional expenses in the future. Many counseling agencies or churches provide low-cost or no-cost advising services. Check the yellow pages or do an online search to locate a service near you.
3. Meet with a financial planner. Similar to a financial adviser, a planner takes a long-term look at your budget and finances to help you plan for retirement and beyond. Since your budget and circumstances can change dramatically after a divorce, it is wise to get professional help in the area of finances to be sure your long-range goals are reasonable and do-able.
4. Consider cutting corners. The old saying "Two can live as cheaply as one" has some merit. Now that you will be solely responsible for your living expenses unless you have moved in with a relative or sought a roommate, expenses may increase or even double. Learn to shop cheaply, using coupons or watching for sales. Maybe "make do or do without" should become your new motto. Turn off unused electric appliances, experiment with low-cost recipes, and seek out cost-free or low-cost entertainment options, such as free library videos and books. If you have children, make cost-cutting a fun adventure rather than a sense of deprivation. Encourage them to save allowance or chore money for desired items like video games and music CD's rather than buying these things for them. Encourage them to purchase creatively at thrift stores and garage sales. Many kids enjoy the thrill of the hunt for a good sale.
4. Share expenses. Ride-sharing, or car pooling, is one way to cut fuel costs following a divorce. Barter services whenever possible. For example, if you're handy with a scrapbook or hedge clippers, offer to exchange services with a neighbor for twenty jars of her home-canned peaches and green beans. You'll both profit.
5. Update financial records, plans, and policies. Change your will, if needed, along with your living will and estate plan. Upgrade insurance policies to protect the kids in the event of your disability or death. Look into the cost of property insurance for your belongings even if you live in an apartment.
Don't let budget concerns loom over you following a divorce, which is stressful enough. Try these easy steps to safeguard your finances and ensure a care-free future.
