Divorce may signal the end of the financial relationship between you and your ex-spouse, but life goes on, and you have to devise a way to make your new earnings work for you. Indeed, there are some divorces where a spouse enjoys a financial windfall; but if you do not fall into that category, you will have to take some important steps to ensure your financial viability.
This post will highlight three of these steps.
Know your credit report – This is important in several respects. First, you will understand where your starting point is, especially if you have not checked your report in some time. Second, you will have the opportunity to dispute any charges or accounts that are unfamiliar to you; perhaps because they were opened without your knowledge during the marriage. Last, you will know what joint liabilities still remain, and what your exposure to risk might be.
Develop a post-divorce budget – Since you are essentially starting over, it is best that you have a budget that considers your new income, regardless of whether you are awarded child support or spousal support. Keep in mind that these awards may not be guaranteed, even though they are court ordered. If the person ordered to pay support experiences long periods of unemployment, they may not be able to meet their obligation.
Consult a financial advisor – Also, with your new income and budget, you may have to make some changes to your retirement plan, especially considering how your previous plan may have been based on having a second income.