Tips to Deal with Your Finances After Divorce

Uncontested Divorce Mediation

Posted July 3, 2019

    

Divorce can be a scary time in your life, no matter how long you have been married. You have gotten used to sharing your life with someone. Many couples also share their finances. They combine their income and work together to pay off their expenses. Some even decide to live off of one income, especially when their children are young.

Because many are used to living off of a combined income (or even staying home to care for the children while the other partner works), your financial future can also be unsettling after reaching an uncontested divorce in Chicago. However, it doesn’t have to be that way.  

Here are some tips for dealing with your finances after divorce.

It is important to remember that, no matter what, your finances are going to be different after your divorce.

No matter where you stand in life, you are going to have to make some changes after you get divorced. You aren’t going to be living on two incomes anymore, so there are going to be some things that you are going to have to cut back on.

If you stayed home, you might not have that luxury anymore. Even if you get alimony and child support, you may have to find a job in order to make ends meet. If you end up paying alimony or child support, you may not be able to afford to go out to eat as much as you used to.

Advocate for your financial future.

During the process of divorce mediation in Chicago, there are going to be times when both parties want to just give up because they just want it to be over with. They will agree to almost anything in order for the divorce to be finalized.

However, that is never the answer. If your spouse supported you during the marriage, he or she should continue to do so afterward. You should advocate for some alimony, especially if you are furthering your education by going to school or staying home with your children. You have also worked hard during the marriage, and you should be able to finish your schooling or take care of your children.

If you have children and have primary physical custody of them, it is important that you advocate for child support. This money is not for you (even if your spouse believes it is). It is money to help raise the children that you had together. Your spouse should help you pay for food, shelter, and clothing for them. They are used to living a certain way and don’t deserve to have to change everything because the two of you can’t get along.

Don’t be afraid to sell your house.

After deciding child custody, trying to decide who keeps the house can be one of the hardest decisions to make during the process of divorce mediation in Chicago. However, no matter how much you want to keep it, there are times when it is best to sell it.

If you or your spouse can’t afford to buy the other one out, you may end up having to sell the house and splitting the difference. It is much better to try to sell it now, while you can, instead of financially struggling and losing it in the future. If you owe more on the home than it is worth, you are going to have to decide whether you can try to hold onto it until the market gets better or just sell it for a loss, get what you can, and move on.

After your divorce, it is going to be even more important that you come up with a budget. If you already have one, you are going to have to update it.

Even if you had a budget before your divorce, you are going to need to make a new one after. The amount of money that you will be bringing in each week (or month) will change. Even if you get alimony or child support, it may be substantially less than you are used to.

Your expenses are also going to change. You may have to move into a smaller house or apartment. You may end up having to give up shopping trips with your friends or even weekly dinners out. Your children may have to cut back on some of their extracurricular activities. All of these cutbacks will make it easier to live on what you have, without going into debt.

Hire a financial planner to help you navigate the next steps.

A financial planner can help you plan for your financial future. He or she can help you sit down and really examine your finances to figure out where to go from here.

With the help of a financial planner, you can determine what your expenses are and how much income you are going to have coming in. He or she can help you set up a budget and make decisions about your finances. While budgeting, your planner may be able to help you cut back on your expenses so you can live a little easier.

Your financial planner can also help you get ready for the future. Though retirement may feel really far away, it is important that you start putting money away as soon as you can so you can enjoy your retirement years.

Figuring out your finances after a divorce can be tricky. No matter how much you advocate for your financial future, the truth is that your finances are going to change. Whether you are used to paying your expenses using two incomes or you are used to staying home with the children, your life is going to have to change a little bit as you navigate and find your new normal. You may be forced to go back to work to help support yourself and your family.

The best way to make sure that you are prepared for the near future (and your retirement) is to hire a financial planner. He or she can help you come up with a budget and start to save for your retirement years.