Divorce is both emotionally and financially demanding. With the combined assets split to support two households, you may struggle to get back on your feet.
Being proactive and creating a financial plan that works for you post-divorce is critical to your financial success.
Make a new budget
Developing a need-based budget is a great place to start. Consider all the sources of income you have post-divorce. Then, make a list of all the payments that come out of that income monthly, quarterly, and annually. Ensure that you have enough funds to make all the necessary payments.
Review all accounts and assets
Collect all the statements of your financial holdings and list your assets. You may want to list the retirement assets, real estate, liquid assets, business interests, and cash value life insurance. It may be beneficial to list your personal property too.
Update your beneficiaries and will
Change the beneficiary on the insurance policies and retirement accounts you kept. A divorce does not terminate your former spouse’s rights to the insurance policies and retirement accounts. Submit a change of beneficiary form to each institution.
Also, revise your will. You should work with an attorney to do so if you need to ensure your former spouse has no right to your assets in the event of your death.
It is normal to feel overwhelmed while organizing your new financial reality. Regardless of your financial situation when married, this is your chance to start new and make your money work for you.