Going through a divorce can be taxing on several levels. Therefore, it is important that individuals properly prepare themselves to undergo the divorce, as well as to survive once it is officially finished.
Particularly in regards to finances, it is critical that parties put certain measures in place to help them to not just survive, but thrive once their marriage is over. Consider a few key tips for establishing a financial footing after divorce.
Have a plan
“If you fail to plan, you plan to fail.” A financial plan can help a divorcing party know how to properly allocate funds to reach specific goals while maintaining a certain lifestyle. This can be beneficial for those ex-spouses who must pay support payments and those who receive them. It is important that the plan be realistic and actionable, which may require the party to adjust certain habits or expectations. However, the end result is worth it, so focusing on that goal can be helpful.
In today’s economy, many people fall onto hard times due to unexpected large expenses. Creating savings can help to prevent such occurrences. If possible, parties should seek to create an emergency fund separate from a savings account. In such cases, the emergency fund can serve to cover unexpected expenses, while the savings account can be allocated towards large purchase goals, such as a home or vehicle, or even a family vacation. It is important to note that in the case that a party must utilize funds from the emergency fund, he or she should try to replenish them as soon as possible.
The majority of individuals who receive support payments do not receive them for the rest of their lives. Seeking higher education or training can be a major tool in preparing financially for the time when they will no longer receive such payments. A greater education level may help parties to obtain new positions or seek higher positions within their fields.
These are a few of the major tips for establishing a firm financial footing after divorce. However, each situation is different, so parties should consider the best options for them in their particular case.