Going through a divorce will probably prove to be one of the most difficult things you ever do. One reason for this that you might not think about right away is what a breakup will do to your money. However, the following will help you move on financially.
Start Learning – Fast
We’ve brought up before that men are often in charge of money in relationships, which leaves women at a serious disadvantage following a divorce. All of a sudden, they have bills to pay, taxes to file, and other routine financial obligations to manage.
While the vast majority of women nowadays are far from financially ignorant, they may still need to make education a priority.
This is especially true for women who go through gray divorces – those who are 50 or older and, thus, may never have been involved in their own finances.
Many men can find themselves in this position too. Their wives may have handled the money or they split responsibilities down the middle. Following a divorce, they now need to look into investing or figuring out how their credit card bill works.
Whatever the case, wherever you’re weak in terms of your financial understanding, make it a priority to educate yourself about it ASAP.
Audit Your Financial Documents Immediately
Another task you need to carry out right away is going through your things and looking for all your relevant financial documents. You may have used a shared filing system with your former spouse, so it’s important you get your documents back and copies of any you would share. This is not something you want to ask for a year from now when it’s time to do your taxes and those documents may be lost.
Revise Your Life Insurance and Will
If you have life insurance and/or a will, they will most likely need to be updated following a divorce. You may still love your ex but probably not enough to leave them everything.
Put a New Budget Together
Assuming your partner also worked, you’re now living with one less paycheck. Depending on how much you both make, that could be a considerable loss.
In either case, it’s time to create a budget. This can actually be very cathartic. You might realize how much money you were spending on things you didn’t actually want or enjoy.
There are all kinds of apps that help you save these days, too, which will make it that much easier to stick to your new budget.
Build an Emergency Fund
For the same reason you need a new budget, you’re going to need to put together a new emergency fund. You can’t fall back on your spouse’s paycheck anymore if you were to lose your job, so make sure there’s room in your budget for this priority.
While there are all kinds of things you need to think about leading up to, during and after a divorce, don’t let your finances fall by the wayside. If you’d like help with anything from redoing your investments to coming up with a new plan for retirement, Mooney Lyons can help you move on financially.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.