A divorce is not only an emotionally and mentally draining event but a costly one as well. The cost of hiring an attorney and court fees can alone amount to thousands of dollars. Moreover, you lose some marital assets during the property division. Based on the circumstances, you may need to pay alimony or child support to your ex-spouse after the divorce.
All of these things can take a toll on your finances. However, it is certainly possible to bounce back by following some steps. Remember that it is not the steps that are difficult to follow, but to be consistent is. If you struggle to navigate the challenges of a divorce, speak to an attorney from Turco Legal, P.C. today.
Steps to rebuild your finances after a costly divorce
- Create your budget.
It becomes important to set up your budget when trying to manage your finances after a divorce. You need to completely understand your financial circumstances, like income and expenses. You need to understand the difference between variable and fixed expenses. By keeping track of how much money you make in a month and where you spend, you can save your money to meet your goals monthly.
- Open your separate bank accounts.
Many couples make a shared account. If you share accounts with your former spouse, you will want to open your investment account. You must open these accounts with your new name, which you might have changed following the divorce process. There is a common misconception that your credit card automatically gets separated after a divorce. Separate your credit cards on your own, or you will be liable to pay your ex-spouse’s debts.
- Update your will.
Major life-altering events like divorce should trigger an update to your will. You need to think of any unlikely event where you and your ex-spouse are not able to raise your child. Therefore, it is recommended to appoint a guardian for them as early as possible. Working with an estate attorney will help you ease the process.
- Setting up an emergency fund.
One of the most important steps after a divorce is saving money for emergency expenses. You must create an emergency fund for unforeseen and sudden expenses. It can significantly reduce stress and provide financial security and stability. Start your savings from a small fund and build it up gradually. A small emergency fund may be enough to cover your minor unforeseen expenses and help you avoid taking debt.
If you feel like your finances have fallen apart after your divorce, hire an attorney today.