24 Feb 5 Tips to Help You Adjust to Your Post-Divorce Financial Situation

Going through a divorce impacts all areas of your life, including your finances. It’ll be more important than ever for you to make sure your finances are in order so that you can start building a strong foundation for post-divorce financial stability.

The following tips will help you make sound decisions as you make the adjustment from a two-income home to a one-income home:

• Establish a budget based on your new financial situation — Losing your ex-spouse’s income will certainly impact your financial situation. You may be responsible for expenses such as housing, utilities, and car payments all on your own for the first time in years. Make sure you establish a budget and track your monthly expenditures.
• Reevaluate your financial goals — It’s likely that many of the financial goals you had established while married won’t be feasible after divorce. Make a list of the financial goals you’d realistically like to achieve based on your new post-divorce income level. Prioritize these goals based on their level of importance. If you have debt, make sure paying it down is high on this list of priorities.
• Re-establish credit — It’s common for divorce to negatively impact your credit score. Make sure you take the necessary steps to start building your credit rating back up. Review your credit report to make sure it’s accurate. Make sure you close all joint accounts and separate your finances from your ex-spouse completely.
• Reevaluate your insurance needs — Sometimes insurance benefits are negotiated as part of a divorce agreement. Regardless, you’ll want to make sure you have adequate coverage for your needs. This includes health insurance, property insurance, disability insurance and life insurance.
• Update your beneficiaries — If your ex-spouse is listed as the beneficiary on your insurance policies, retirement accounts, and bank accounts, you’ll want to make all the necessary changes so that a new person is designated as beneficiary. You should also update your will to reflect these changes.

You may also want to consider working with a financial consultant who can help you make all the necessary adjustments to your budget. These professionals can also help you develop a strategic plan to address both long and short term financial goals. Ultimately, this may be one of the most important things you do immediately following your divorce.

If you need assistance with a divorce matter, please contact the Law Offices of Jeffrey M. Bloom using the form at the top right side of the page or call (855) 208-3650 today to schedule a consultation. Mr. Bloom serves clients in West New York, Ridgewood, and throughout Hudson and Bergen