Many people worry about the changes divorce might bring to their financial situation. But it isn’t all bad. Here are 4 important benefits you can expect once you are divorced:
During your divorce, you will have prepared a budget document (aka income needs schedule) to establish what money you need to cover your monthly expenses. This may well have been the first time you have done any budgeting. You’ll now understand how much your monthly costs are and where your monthly income goes. Doing this exercise will serve you well in moving forward after your divorce. You will now have a much clearer idea of your costs and where you could save money each month.
Greater control over your money
This is particularly positive for those who are leaving a relationship with someone who:
- spent excessively and perhaps created debt for the family, or
- spent/invested money without consulting you, or
- controlled all the family finances and what money and knowledge of the finances you had access to
Opportunity to create a new financial plan
You may be coming out of your relationship with little experience or knowledge of managing your own finances, having not been financial independent for a very long time, or perhaps ever. But you now have the opportunity to review your finances and get much more involved with how they work for you. It is useful to work with a financial planner to help create a financial plan to suit your particular needs for your new future.
This is a big one! You now don’t need to consult with your ex about how to spend/invest your money. It is yours to do with whatever you like. This new financial freedom can be quite empowering. It can be exciting to start to make financial decisions for yourself that work for YOU. Amongst other things, this could involve the opportunity for a financial refresh, e.g. setting up new accounts, investments, pension planning etc.
If you have found the tips in this blog useful then you’ll find lots more in my eBooks, which you can purchase and download today.
If you’d like to work with me 1:1, for help preparing for your divorce/or support during or after the divorce process, please get in touch to find out how I can help.
Why I became a divorce consultant.