Managing Your Finances After Divorce

money arrayOf the many struggles during and after divorce, managing finances can be one of the most trying. The divorce itself may cost you more than you planned and leave you with little, or in debt. However, as troubling as these circumstances are, it is possible to recover. You can manage and better your finances after divorce.

Take control immediately.

Though the divorce may hold some unexpected expenses, start taking control before things are finalized. Create a budget and strategy, even as you begin the process of divorce. The sooner you do so, the easier it will be later.

Review your finances.

If you are not faced with your financial situation, it is easy to remain ignorant of the reality. After divorce, you may be entirely on your own, so it’s important to know precisely where you stand financially. Start by gathering information on all of your finances. Get a credit report; you’re entitled to one free per year. Go ahead and get your score, too. That way, you can take stock of everything you have and know what sort of credit you have. Together, this gives you a portrait of where you stand when you’re on your own.

Create a budget and pay off as much of your debt as you can afford.

Once you know your financial situation, you can plan accordingly. You will have expenses related to the divorce, but after you will need to be ready with your income, expenses, debts, etc. Start by removing expenses without which you will be just fine for the foreseeable future. For example, instead of paying high costs for television channels, stick to just Netflix, Amazon, or Hulu for a while. Trim any expenses that you feel you might need, but of which you can use less. These may seem like little things, but they can add up and you won’t have to do without forever. As you do this, budget for higher payments toward any debt you have. Make a plan to pay it off sooner.

Divorce is hard and finances don’t make it any easier. Let us help you get through a divorce with less expense. Come see us at Miller Law.

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