Torn out couple photo Budgeting

Getting a Handle on Your Finances After Divorce

Posted on 4 April 2017

Following a divorce, your finances are often in disarray. For the duration of your marriage, your finances were linked to another individual. You paid your bills together, handled major financial transactions together, and based your budget around what worked best for both of you. Handling your finances after divorce is a whole new picture and managing it looks different than it did when you were married.

Secure Your Accounts

Have all of your accounts been joint accounts since your marriage? Did you share a checking or savings account? It’s time to create your own accounts or remove your spouse’s name from them to ensure that they no longer have access to your funds.

Create a New Budget

Sit down and take a hard look at what your new budget is going to look like. Examine your income versus your expenses. Be realistic about what you can expect from child support when creating your new budget. You don’t want to be caught short because you were expecting more than you can get!

Reduce Expenses

That first look at your budget with a single income can be both enlightening and terrifying. Find ways to reduce expenses now that you’re single again. This might include:

  • Changing your mobile phone plan to reduce data rates;
  • Decreasing unnecessary bills such as cable, gym membership, and other recurring expenses that can add up;
  • Meal planning to avoid unnecessary food expenses and waste;
  • Taking your lunch to work and making your own snacks or coffee instead of buying it.

Check Your Loans

From your mortgage to the loan on your personal vehicle, you want to make sure that you have separated your finances from your spouse’s–especially if you are concerned that they won’t pay a loan that will impact your credit. Contact lenders to let them know that you have divorced and ask them how to proceed. You should also separate utility bills and place them in the name of the person who will be staying in the home.

Prepare a Plan for Child Support

Whether you are the spouse who will be keeping primary custody of the children and receiving child support or the spouse who will be paying child support, it’s critical that you have a clear plan in mind for how to support the kids. It’s not just about regular payments that help cover food, clothing, and other minor expenses. Make sure that your plan includes who will pay for medical bills, how you’ll take care of school excursions or sport expenses at school, and anything else your children need to keep their lives running smoothly.

When you’re in the middle of splitting up with your spouse, there are plenty of little expenses that add up fast! If a short term loan will help you reach your goals or help you out of a tight spot, contact us to learn how we can ease some of your stress during this trying time.