Managing your finances after divorceJun 08, 2023
Divorce is a challenging time for everyone involved, and managing your finances can be particularly difficult. The good news is that there are many ways to get on track with your finances after divorce.
Here are a few tips to help you manage your finances after divorce:
1. Create a budget
The first step in managing your finances after divorce is to create a budget. This will help you get a clear understanding of your income and expenses, and make it easier to make financial decisions. Start by listing all of your income sources, including your salary, any support payments, and any other income streams you may have. Next, list all of your monthly expenses, including housing, utilities, food, transportation, and any other recurring expenses.
2. Separate your finances
If you haven't already, it's important to separate your finances from your ex-spouse. Close any joint bank accounts and credit cards, and open accounts in your name only. This will help you avoid any confusion or potential financial disagreements.
3. Build an emergency fund
It's important to have an emergency fund in case of unexpected expenses, such as a medical emergency or a car repair. Aim to save at least three to six months' worth of expenses in an easily accessible savings account.
4. Consider a financial advisor
If you're struggling to manage your finances on your own, consider hiring a financial advisor. A professional can help you create a long-term financial plan, manage your investments, and help you make informed financial decisions.
5. Prioritise debt repayment
If you have any debt from the divorce, such as legal fees or outstanding bills, prioritise repayment as quickly as possible. This will help you avoid additional fees or interest charges, and improve your credit score.
6. Start saving for retirement
It's important to start saving for retirement as soon as possible, and this is especially important after a divorce. Consider opening a personal pension or contributing to an employee pension scheme.
Managing your finances after divorce can be challenging, but it's important to take control of your financial situation. If you need help or support with debt or benefits advice please do contact a relevant organisation such as Citizens Advice or StepChange.
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