Divorce requires you to reexamine every aspect of your life. Your goals have to change once your spouse is out of the picture and you have to worry about things like alimony and child support. While you work to untangle your marital finances, you have to figure out how to pay for your divorce and your new life.
No matter how well-off you are, you are not guaranteed to have the lifestyle to which you grew accustomed during your marriage. Keep reading for divorce financial guidance with information from TIME Magazine.
1. Review your finances early
You should start dealing with the financial consequences of your divorce before you sign the decree. Look at your sources of income, track your expenses and reassess your tax situation. You can get prepared by reviewing your bank and credit card statements from the past year. Before you can know what you can spend in your newly single life, you have to know what your spending habits were before the divorce.
2. Create a new budget
Do not expect your expenses for food, entertainment or transportation to be cut in half. Track your weekly and monthly expenses to help yourself adjust to your new life. You will also need to factor in any child support or spousal support costs. Remember that these payments can go up if your income increases.
3. Automate your savings
When you get your paycheck, it is crucial to pay yourself. One of the best ways to accomplish this is by enrolling in an automated savings program to help you save a consistent amount. Most banks can help you automate a transfer from your checking account into your savings or investment accounts after your paydays.
Divorce can have a significant financial impact. The more prepared you are, the better you will be able to deal with any future surprises.