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Life after divorce: 3 crucial financial tips after divorce

| Oct 6, 2021 | Firm News |

Let’s face it; divorce can have a profound impact on your life and finances. Unfortunately, dealing with money issues post-divorce can be extremely challenging as you work towards rebuilding your life. If you are left struggling following a divorce, you must act as soon as possible. 

Some of the obvious steps you need to take immediately following a divorce to get your finances back on track include adjusting your expenses to reflect your newly single status. You might also want to develop a plan to deal with any debts you may have assumed and set new financial goals. 

Here are three important tips you need to adopt to streamline your finances after divorce:

Review your expenses in light of your new financial situation

For most people, a divorce simply means that you will have more obligations to meet but with a reduced income. Where you once had you and your ex contributing to the household budget, now you will solely be responsible for paying every bill. Your new budget must fit into your current financial reality because trying to stick to old spending habits could quickly become disastrous. 

Start building credit in your name if you don’t have it

If you never had loans or credit cards in your name while married, you must start developing your own credit history as soon as you can. You will need a stellar credit score when buying or leasing a home or when applying for credit in the future. Without a credit history, it may be hard getting approval to borrow after divorce. 

Revise your tax withholdings

Your tax situation will definitely change following the divorce because you will no longer file as married. Depending on whether you will claim your kids as dependents or not, you will either file your taxes as single or as head of a household. Either way, you will need to adjust the amount your employer is withholding from your paycheck after your divorce. 

Divorce is all about severing ties and turning a new page in life. Taking steps to safeguard your finances can help you secure your future and have peace of mind essential for dealing with the challenges arising from the divorce.