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How to have financial independence after a divorce

On Behalf of | Aug 24, 2022 | Divorce

Divorce is a stressful and unsettling situation for many different reasons. Financial worries are usually at the top of the list, and people tend to stay in failing marriages for fear of economic fallout. Florida does not require fault as a ground for marital dissolution, but people are still nervous about surviving on one income. Another issue is when stay-at-home parents suddenly need to reenter the workforce. Understanding a few things can help you find financial independence after a divorce.

Make a budget

After a divorce, you should learn your monthly financial picture. Find out how much comes in and what you need to pay. To tighten the budget, decide what payments you don’t need. Sometimes clubs and services will let a person put their membership on hold. Memberships people can easily live without are streaming services, but a trickier payment is a private school. If private school is necessary, the school might offer financial aid or payment plans for tuition.

Accept the divorce

A person needs to accept the loss of their marriage after a divorce. Couples have hopes and dreams, and that life is gone after a divorce. After acceptance, you can start working on finances and parenting. People should engage in life again and not be hard on themselves. Keep a clear head and think about the new life you want.

Make a build back credit plan

Resolve any joint debts with your ex-spouse after a divorce. Both parties should decide what debts they’ll handle and close joint accounts. Make sure no one misses a credit card bill on a joint account because it’ll hurt both credit scores. Make sure to track and pay every bill or utility. A person who doesn’t have a credit history needs to start establishing one. Credit cards that offer cash back with purchases and no annual fees are a good place to start.

There are things to do to help either parent protect themselves and their future. Keep a tight budget to figure out what’s necessary each month. Technology can help a person build their credit and create financial independence after a divorce. Automatic payments can help a person keep track of bills. Although finances after a divorce can be stressful, creating a plan brings you closer to financial independence.