Divorce is expensive. According to a survey, the average cost of divorce is around $15,000. This estimate includes court filing fees, attorney fees, and more. If the divorce involves a costly custody battle, the cost can exceed $90,000. Also, divorce will result in a decrease in the net worth of both parties. One may need to adjust to a new standard of living.

Like so many separated couples, I was so worried about rebuilding financially after I divorced. Not just starting all over, but what the financial future would look like for me. These worries didn’t emanate from just the breakup, but the fact that I did everything regarding finances with my ex. These included but are not limited to spending, saving, planning, and so on. This was one of the reasons my divorce was so disastrous. Not having a financial plan for post-divorce landed a big blow to my face.

However, it is important to note that divorce can also be a chance for a better financial picture. With the right financial plan, you can use the fresh start after divorce to get your finances in good order. After my breakup, I was down for a while, but I fought back by taking these simple steps which I will share with you.

Strategically Create a New Monthly Budget.

After divorce, there is a high chance that your household income and expenses will look a bit different and you may have to budget on your own for the first time. This can be a bit difficult because you are doing it for the first time after years of budgeting with your ex as a couple.

For budget creation, you have to analyze and document your monthly earnings and expenses. Now that you are on your own, the cost of some expenses may be lower for example, food, groceries and etc. While the cost of some other major expenses may be higher because you are paying it alone.

This act of budget creation has been helping me to keep track of my income and expenses. You can adopt it to stay ahead of your spending goals.

Know Your Net Worth.

You might have been tracking your net worth jointly with your ex before your separation. If this is so, or you haven’t been tracking it at all, it’s high time you started sole tracking. After your breakup, your net worth will be different than you are thinking. When you are starting afresh, it’s important to take a look at your net worth.

After my separation, I realized my net worth was not as high as I thought. But when I calculated my net worth, I modified my spending to suit it. Your net worth is the difference between your assets and your liabilities. I was left with debts after my breakup. But tracking my net worth has helped me reduce debt and start a savings.

Find Means to Increase Your Income.

One of the best ways to overcome depression, and loneliness and be able to move on after a breakup, is to have a stable income. This will help keep you going and allow you to take care of yourself. However, when it comes to recovering and thriving financially, it is paramount to increase your income. After my divorce, I realized that to eliminate debt and to recover financially, I would have to increase my income.

There is no doubt that this is easier said than done, but there are ways to do this. Below are few suggestions

Increase you income

• Seek out a higher paying job

• Start a small business

• Get a part-time job

• Start a remote job

 

Boost your credit

During my marriage, my credit took a big hit. After the marriage, I began spending time boosting my credit score. To reach larger financial goals, you must have a good credit score in place. You may even find out that after your divorce, you have little to no credit score at all. This can be so if you relied on your ex’s credit score to obtain credit cards or loans.

If you don’t have enough credit history, consider opening a new credit account to help build your credit history.

Set New Financial goals

During my marriage, my financial goals were planned with my ex. But most of these goals became invalid after my divorce. But when I started over, I knew I have to set new goals for myself.

To set new financial goals, think of things that are important to you, what you want your financial picture to look like in the years to come, and then set the goals that will help you achieve that status.

Consider professional help.

You don’t have to go through this phase alone. Some financial professionals can help you with this transition. If you feel you need help executing or making financial plans, you can hire professionals.

However, these steps can only help you if you stay positive. While divorce is an end to an important era, it is also the beginning to another era. Staying positive will help you find it easier to focus your attention on recovering financially after divorce, rather than mourning your financial changes.

If you are on the verge of separation, you don’t have to wait for the divorce to happen, you can start putting these strategies in place. It will make the transition smoother for you.

Joseph A