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Ask an Expert – How can recently single people start to take ownership of their money and money management, especially newly divorced people whose exes controlled the money.

Question

How can recently single people start to take ownership of their money and money management, especially newly divorced people whose exes controlled the money.

Answer

One:

One who is newly single should take a thorough look of their cashflow, including expenses and income. Living with one income is quite different and affects what excess (not necessary) expenses are tenable.

Two:

After working through a divorce, the household assets may be in disarray. One should organize their debts, including mortgage, credit cards, etc and understand due dates and interest rates. They should organize their savings, checking, and investments and understand interest rates, rates of return, allocations, and strategies.

Three:

After one has a working understanding of their cashflow, debts, and savings, one can develop a strategic plan to work toward increasing savings (personal and investments), decreasing debts, and working toward their future goals.

* On a side note, newly single people should update their beneficiaries on all of their insurances, financial accounts, estate documents (will, power of attorneys, healthcare proxy, trust), etc to reflect their post-divorce intentions.