Financial Recovery After a Divorce

Just when you thought your mental health has recovered from a recent divorce, you are faced with also facing the realities of financial recovery post-divorce. Unfortunately, everyone knows that divorce doesn’t end when the papers are signed. For many, it’s a wake-up call to a lot of things they haven’t had to worry about in years: including finances.Financial freedom doesn’t always have to mean being debt-free, but there are some essential keys to making the journey to stability that much easier, and the good news is they’re universal.Starting immediately on setting up goals and creating a step-by-step plan is obviously going to be a priority. Taking the time to sit down and figure out where you want to be by a certain point in the future, and what you want to have achieved by then, is crucial to getting the jump on financial security. You have to take advantage of time and not let things build up, or you may find yourself in a worse position than you were originally. Take a moment to think about things like retirement, travel, mortgages and investments – what’s important to you? What’s the big picture? From there, you can break down your priorities and better understand where you need to start to achieve them.

Creating an automated system in order to save will also take some of the pressure off climbing back up the hill to being financially secure. “Pay yourself” by setting up automated withdrawals from your checking account – or whatever account your pay goes into – into a savings or investment account every week, or fortnight, or whatever system works best for you. You’ll find that not having to manually monitor and execute a budget will give you more time to focus on other things, and don’t worry – it will stop feeling like you’re “losing” money from your paycheck pretty quickly.

You can also consider using this new point in your life as an opportunity to invest in yourself as earning potential by furthering your education or improving skills with any number of technical vocational courses. It not only means you could increase the odds of furthering your career, but adding another goal to work towards can also help with the emotional toll a divorce takes on your mind. Perhaps most importantly, you need to live within your means. Depending on the specifics of your divorce, you may have an entirely new living situation and a drastically different set of funds than you’ve been used to, and it can be easy to stay in old habits. But legal fees, new expenses usually taken care of by your spouse, credit cards, and other debt that may be lingering will require a shift in spending. It can be a bit of a shock and take time to adjust to, but in the long run will definitely pay off.

If you are considering divorce or are currently going through one and would like legal consultation, please don’t hesitate to get in touch with Daniella Lyttle at Lyttle Law Firm. You can get in touch either via the website or by calling 512-215-5225.