When people discuss divorce, they often focus on the loss of a romantic relationship and the problems that children of divorce often experience. While the end of a relationship and the difficulties of parenting during a divorce are major issues, one should never overlook the havoc wreaked on finances during a divorce. Both men and women experience poverty immediately after getting divorced that can be difficult or impossible to overcome. Though it may be impossible to completely avoid the financial damage caused by divorce, there are a few tips for post-divorce financial recovery that may help you rebound more quickly.
Live Like You Have No Disposable Income
Even after a financially draining divorce, you may have a small amount of income each month that is technically disposable. During your marriage or when you were more financially stable, this money would be used to treat yourself to small items that you want but do not necessarily need. Once your divorce is finalized, start living as if that disposable income does not exist. Instead of purchasing new clothes or going out to eat, save that cash instead.
Avoid New Debt
Whenever possible avoid obtaining new debt. Credit scores often drop dramatically after a divorce, meaning you should do anything in your power to avoid new credit inquiries or opening new lines of credit, since both actions could further reduce your score. Instead, try to find alternative means to finance purchases such saving points for gift cards, borrowing from friends or relatives, and paying cash whenever possible. Even consider selling assets or personal items you were granted during the divorce such as extra vehicles, jewelry, clothing, and furniture.
Boost Your Income
Do what you can to replace the income lost after your household lost the funds brought in by another adult worker. Try to work overtime when possible, consider obtaining a flexible second source of income such as driving for a delivery service or ridesharing program. Also look into educational opportunities that are reimbursed by your employer or paid for by grants that you may now be eligible to receive. An additional certification or degree could help you get a raise or obtain a better paying job.
Budget and Downsize
Creating a realistic budget that you strictly follow will help you reduce financial waste by reducing unnecessary spending. Remember, your budget should be something that you can reasonably follow and include small goals such as paying extra on credit cards when possible or putting a few dollars a month into a savings account. Also, do not hesitate to downsize since moving to a smaller home or apartment in a less expensive area could help you improve your financial situation more quickly. Just because you won the right to retain ownership of a home in a divorce does not mean you have to live in that home indefinitely.
Vayman & Teitelbaum
The first step to achieving financial independence after divorce is to receive a fair settlement during your divorce. A skilled division of property attorney can work to secure the marital assets you will need to start over as a single person. The attorneys at Vayman & Teitalbaum have years of experience successfully negotiating settlements that benefit our clients. Contact one of our Atlanta, Georgia locations to schedule an initial consultation so that we can begin discussing your needs today.