There are many reasons those recently divorced may be feeling the pinch of tight finances. Since it is cheaper living married than single, the recently divorced are already at a disadvantage. Couple that with any costs associated with the divorce and the property division and it can really do a number on a person’s finances. There are a few ways for those living the newly single life to recover financially after such a big life change.
Rather than continue to make financial choices that will leave your budget feeling tight, here a few tips to keep a few bucks in your wallet. Taking control of the finances is the first place to start. Making a list of what you would like to accomplish with financial choices will help to determine what financial decisions need the boot. Once the newly single person creates a plan, stick to it by putting it into action, such as putting money automatically into a savings account each paycheck.
Since many couples are subject to a 50/50 marital property asset division, there is much that was once shared that may no longer belong to a recently divorced person. It is important to live within your means during this time in order to help offset the lack of two incomes or two savings, for example. It’s about understanding that things have changes and this may very well apply to finances. However, many newly divorced find that it is small adjustments such as these that make the biggest difference in their quality of life.
Most recently divorced people are still going through a time of change but it won’t last forever. Soon, the newly divorced person will hit a new rhythm that allows them to feel the financial freedom and security they once craved. A talented expert may be able to help financial distress before it even arrives. For those that are entitled to most of the marital property it can be about avoiding the financial blow before it happens.
Source: time.com, “10 Steps to Financial Recovery After a Divorce,” Joe O’Boyle, Oct. 14, 2015
