Ask An Expert

 How can I take control of my finances following my divorce?

Joann North

Answered By

Cindy Locker

 

Co-Ower at Next Chapter Finances

cindy@nextchapterfinances.com

 

Question:

How can I take control of my finances following my divorce?

Answer:

Taking control of your finances after a divorce can feel overwhelming, but it’s an essential step toward establishing your financial independence and stability. Here are some steps to help you take control:

 

9

Assess Your Financial Situation:

Gather all financial documents, determine your assets and liabilities, and calculate your monthly income and expenses. During this emotionally challenging time, it’s important to seek compassionate support as you take the first step of gaining control over your finances.

9

Create a Realistic Plan for Your Money:

Identify necessary fixed expenses and variable expenses. Determine what’s important to you. Is your spending inline with your goals?

9

Update Your Financial Accounts:

Open new bank accounts in your name only. Remove your ex-spouse from joint accounts or close them if needed.

9

Establish Credit in Your Name:

If you don’t already have credit in your name, open a credit card or apply for a small loan to start building credit.

9

Consider Professional Help:

Consult with a financial coach to help you create a financial plan and set goals for your future. Work with our network of professional experts to help ensure your goals are met.

9

Plan for the Future:

Start or update your emergency fund to cover unexpected expenses. Contribute regularly to your retirement accounts. Update your will, power of attorney, and any other legal documents and update beneficiaries on all of your accounts.

9

Focus on Your Financial Goals:

Set short-term and long-term financial goals. Stay focused on your goals and track your progress regularly with your financial coach.

9

Take Care of Yourself:

Divorce can be emotionally taxing, so make sure to take care of yourself. Consider seeking support from friends, family, or a therapist. 

Taking control of your finances may feel challenging at first, but with time and effort, you’ll gain confidence and financial independence. Remember to be patient with yourself and celebrate your progress along the way.