Once you decide to divorce, it won’t be long until you’re planning out your future. And for most people, this means taking a strong look at their financial situation and the best way to maintain stability down the road.
You never know what will happen post-divorce, but that shouldn’t stop you from planning for every situation imaginable.
Steps to take
There’s no exact formula for ensuring financial stability after divorce, but there are some steps you can take to put yourself in position for success. Here are three:
- Pinpoint your sources of income: Without an income source, it’s safe to say that you’ll struggle to stay afloat financially. In addition to employment, consider if you’re eligible to receive spousal maintenance and/or child support from your ex-spouse.
- Create a post-divorce budget: This budget should outline both your income and expenses. If you’re spending more than you’re earning, that’s a problem. Don’t wait another day to address this potentially devastating mistake.
- Focus on housing costs: This is likely to be your largest expense post-divorce, so it deserves a good amount of attention. Do you want to stay in the family home? If so, can you afford to do so? Will you purchase a new home? How much can you afford? These are the types of questions that allow you to pin down how much you can afford to spend on housing.
The sooner you begin to think about your finances after divorce, the sooner you can formulate a plan for making sound decisions that work in your favor.
You will face challenges. You will run into roadblocks that seem insurmountable. You may even question if divorce was the right decision.
Even though there’s a lot of uncertainty regarding your future, and your finances in particular, don’t stop moving forward. When you take one step at a time, with your eyes on creating the best possible life for you, you’ll end up in a better place.
Once you feel good about your ability to reach and maintain financial stability, it’s easier to navigate the divorce process and any challenges that you face along the way.