Finances After Divorce: 23 Useful Tips You Need to Know | Wildchildretire

Recently split from your partner and looking for tips to help you efficiently manage your finances after a divorce?

Don’t worry. We got you covered.

Here we’ll go over 23 critical tips that will help ensure your post-divorce finances are in tip-top shape and allow you to fulfill your financial hopes and dreams.

Some key tips include canceling joint accounts, finding user-friendly budgeting apps to help you manage your finances, and looking into low-energy side hustles to help ease the financial burden of the divorce.

Let’s get to it.

Managing Finances After Divorce (23 Helpful Tips That Actually Work)

Look..

Divorce is tough…

But you got to stay focused on those finances.

It will make sure that you keep doing well in life and not have any financial problems in the future.

Here are some tips on managing your finances after divorce.

1. Hire A Professional

The first thing you should do is hire a professional to help you with your finances. This can be an accountant or even a financial advisor. They will help you keep track of your income and expenses. They can also help you find ways to save money.

2. Cancel All Joint Accounts

The next thing you should do is cancel all joint accounts. This includes credit cards, bank accounts, and any other type of account with your ex-spouse. This is so you don’t have to worry about them using your money.

3. Open New Accounts

After you cancel your joint accounts, you will need to open new ones. This includes a new bank account, credit card, and any other account type. Be sure to choose accounts that are in your name only.

4. Budget

When you get divorced, it is vital to stay focused on your finances. This is so you can keep doing well in life and not have any financial problems. A great way to do this is by creating a budget.

There are many different ways to create a budget. You can use a budgeting app, create a spreadsheet, or even use a piece of paper and a pencil. The important thing is to find a way to track your income and expenses.

A budget will help you see where your money is going. It will also help you find ways to save money. And if you ever get in another relationship, it will allow you to compromise for money better.

And suppose you’re looking for a simple way to manage your finances without wasting valuable time. In that case, I highly suggest using Personal Capital.

Personal Capital is a free money management app that allows you to budget your money, create tailored financial plans, and gain free access to trained financial specialists, all from the convenience of your cell phone.

You’re already stressed enough; let a computer do the burden of budgeting.

5. Reduce Expenses

After you get divorced, you will need to reduce your expenses. This is because you will no longer have two incomes to support your lifestyle. There are many frugal living tips that you can follow, which include getting rid of cable, eating out less, and shopping at discount stores.

Using a cashback app like Ibatta or a gift card app like Swagbucks can also help lower your spending.

Whatever you choose, small and steady steps are the key.

6. Calculate Net Worth

It is also a good idea to calculate your net worth. This is the value of all your assets minus all your liabilities. Your assets include your home, savings, and investments. Your liabilities include your mortgage, credit cards, and student loans.

You will see how much your divorce has cost you by calculating your net worth.

Oh, as stated earlier, Personal Captial can help you with that.

7. Create An Emergency Fund

It is essential to have an emergency fund saved up when you get divorced.

If something terrible happens, you can use this money if you need cash fast.

This could be for car repairs, medical bills, or even to help you pay your bills if you lose your job.

Three months of living expenses are the bare bones you should aim for.

Here are some tips to help you get started:

• Start small when you are creating your emergency fund. This way, you can gradually save up money without putting too much strain on your finances.
• Make it a priority to continue saving. This means that you should try to put away as much money as possible each month.
• Keep it in a separate account from your regular checking and savings accounts. You will be less likely to spend it on non-emergency expenses.

8. Focus On Debt

Unfortunately, divorce and finance are two terms that are usually in the same breath debt.

That’s why it’s really important to get rid of any debt after the dust has settled.

Because if you don’t, you could find yourself in a lot of financial trouble down the road.

If you have joint debt with your ex-spouse, it’s essential to get this paid off as soon as possible. You can do this by either refinancing the debt in your name or working out a payment plan with your ex.

If you have any credit card debt, it’s also important to get this paid off as soon as possible. Credit card debt can be costly and can quickly get out of control.

Finally, if you have any student loans, it’s essential to get them paid off as soon as possible. This is because student loans can be tough to discharge in bankruptcy.

If you focus on getting rid of your debt, you’ll be in a much better financial position after your divorce.

9. Create New Financial Goals

After you get a divorce, you must establish new financial goals. This can help you better understand your current financial situation and make managing your finances after divorce much more accessible. Some things to consider when creating new financial goals include:

• Figuring out your current monthly expenses and income
• Determining what kind of lifestyle you want to maintain
• Making a budget and sticking to it
• Saving money for your future

You’ll also need to consider their needs when creating your new financial goals if you have children. Make sure you factor in child support and custody arrangements when budgeting for your post-divorce life.

10. Get New Life Insurance

After a divorce, it is crucial to get a new life insurance plan. This is because your finances will be different now that you are divorced. You will need to make sure that you have enough money to cover your expenses if something happens to you.

There are a few things to consider when getting a new life insurance policy.

First, you will need to decide how much coverage you need. This will depend on your income and your expenses. You will also need to determine if you want a term life insurance policy or a whole life insurance policy.

Term life insurance is cheaper, but it only lasts for a certain period.

Whole life insurance is more expensive, but it will cover you for your entire life.

You will also need to decide who will be the beneficiary of your life insurance policy. This is important because the beneficiary will receive the money from the policy if you die. You may want to choose your spouse, your children, or someone else important to you.

11. Take A Look At Your Investments

After getting divorced, it is really important to look at your investments and make sure they still fit your goals. It’s also a good idea to make sure that you are diversified, especially relying on your spouse’s income.

Now is also an excellent time to start saving for retirement if you haven’t already. If you have been through a divorce, you know that life can be unpredictable, so it’s essential to be prepared for anything.

12. Create An Estate Plan

After a divorce, you need to create another estate plan. This is because your finances may differ after the divorce, and you’ll want to ensure that your assets are protected.

You may also want to consider creating a trust to help manage your finances after divorce.

13. Change Mailbox Address

Mailbox addresses also need to be updated.

This is because you will need to manage your money and other business assets separately. You can either have two separate mailbox addresses or use a P.O. box for one spouse and keep the other address for the other spouse.

Be sure to communicate this change with your family and friends to know where to send things.

14. Secure Kids College Funds

Don’t forget your kids.

This includes saving money for your child’s college education. There are many benefits to doing this, including tax breaks and the ability to help your child get a head start on their future.

There are many ways to save for college, including 529 plans, savings bonds, and custodial accounts. First, however, you should talk to a financial advisor to find the best way to save your child’s education.

Divorce can be difficult, but managing your finances well can help you and your family get through it. With careful planning, you can ensure your child has the bright future they deserve.

15. Talk About Selling The House

The house is a very big-ticket item that needs to be discussed after a divorce.

It makes the most sense for one person to keep the house and the other person to move out. But in other cases, it may be best for both parties to sell the house and split the proceeds.

Here are some things to consider when making this decision:

It can be challenging to manage your finances after a divorce. If you are the one who keeps the house, you will be responsible for the mortgage, taxes, and upkeep. This can be a lot to handle on one income. However, if you sell the house, you can split the proceeds and use that money to start fresh in a new place.

Divorce can be expensive. If you are already struggling to make ends meet, selling the house can help you cover the cost of your divorce and start fresh with a clean slate.

If you are having trouble managing your finances after your divorce, selling the house can help you save money. You can use the proceeds from the sale to pay off debts, start a new budget, and begin saving for your future.

16. Check Credit Score

And, of course, the credit score…

After a divorce, you will need to establish credit in your name. This can be done by getting a credit card, taking out a loan, or using a credit-builder loan.

Building up your credit to get the best terms on loans and credit cards is important. A good credit score can also help you get a job, an apartment, or insurance.

You should check your credit score at least once a year to ensure it is accurate. In addition, you can get a free copy of your credit report from all three major credit bureaus annually.

If you find anything wrong with your report, you can file a dispute with the credit bureau.

Divorce can be tough, but you can get through it with careful planning and a little help from your friends. Be sure to stay on top of your finances, check your credit score, and talk to a financial advisor if you need help.

You can ensure your divorce doesn’t ruin your financial future with a bit of effort.

17. Change Your Tax Status

After finalizing a divorce, one of the most critical parts is updating the IRS on your new status. After a divorce, you will need to file taxes as a single person. This means you will no longer file taxes jointly with your ex-spouse.

Many benefits to filing taxes as a single person include lower taxes and more deductions. However, you should talk to a tax advisor to see if you will be better off filing taxes as a single person.

If you have children, you will need to update your tax status. You will need to file taxes as the head of household if you have custody of your children. This status gives you a higher standard deduction and more tax breaks.

You should also update your will and beneficiaries after a divorce. This will ensure that your assets are allocated according to your wishes.

Divorce can be a stressful and complicated process, but it is vital to stay organized. Filing your taxes correctly is one way to help make the transition a little easier.

For more information on divorce and taxes, you can visit irs.gov.

18. Get A New CPA

A divorce is a significant life change, and it can significantly impact your finances. One of the best things you can do to protect your financial future is to get a new CPA.

Here’s why:

1. A fresh start. After a divorce, you’re starting a new chapter in your life. It’s an excellent time to start fresh with a new CPA who can help you manage your finances in the new reality.
2. Experience with divorcees. A good CPA will have experience working with divorcees and know how to navigate the financial challenges of the territory.
3. Objectivity. It’s essential to have someone in your corner to offer objective advice about your finances. A new CPA can help you make sound decisions about your money without being influenced by your emotional state.
4. Knowledge of the law. A good CPA will be up-to-date on the latest divorce laws and know how they impact your finances. This knowledge can be invaluable in protecting your financial interests.
5. Access to resources. A good CPA will have a network of professionals (attorneys, financial planners, etc.) who can help you with your divorce.

Getting a new CPA after a divorce is one of the best things to protect your financial future. Make sure you choose someone with experience working with divorcees and offer objective, unbiased advice.

19. Inform the Social Security Administration of Changes

It is important to keep the Social Security Administration (SSA) informed of changes in your marital status. If you do not, you may miss out on essential benefits.

If you are getting divorced, you should notify the SSA as soon as possible. This is because your eligibility for benefits may change. For example, suppose you previously received spousal benefits. In that case, you will no longer be eligible for these once your divorce is final.

It is also important to update your address with the SSA. They can send you important correspondence, such as benefit statements, tax forms, and more.

To update your information with the SSA, you can:

• Call the SSA at 1-800-772-1213
• Visit your local SSA office
• Update your information online at ssa.gov

When updating your information, you may need to provide:

• Your name
• Your Social Security number
• Your date of birth
• Your address
• Your phone number
• Your email address
• Your new marital status
• Your divorce decree (if applicable)

Updating your information with the SSA is easy to do, and it can save you a lot of hassle down the road.

20. Backup Then Wipe Computer Clean

It’s no secret that divorce can be messy. But did you know that your computer can be caught in the crossfire? If you’re going through a divorce, it’s essential to protect your computer – and your personal information.

One of the best ways to protect your computer is to backup your data. Then, if your computer is damaged or destroyed, you’ll still have a copy of your important files.

But backing up your data isn’t enough. If you’re divorcing, you should also wipe your computer clean – this will help protect you from identity theft and ensure that your ex can’t access your personal information.

Here’s how to backup and wipe your computer clean after a divorce:

• There are many ways to backup your data, including using an external hard drive or cloud storage service. Whichever method you choose, make sure to create multiple copies of your data if one is lost or damaged.
• Once you’ve backed up your data, you’ll need to wipe your computer clean. This can be done using a software program like Darik’s Boot and Nuke (DBAN). DBAN will overwrite all of the data on your hard drive, making it unrecoverable.

21. Inform Parents

It is always a difficult and emotional time when parents get divorced.

One of the first things you need to figure out is how to support yourself and your children financially. This can be a daunting task if you have never worked outside the home. You may need to rely on family and friends for help.

Your parents may also be able to help you financially.

Or maybe just for emotional help.

It is important to have this support during this difficult time.

22. Inform Kids

It is important to talk with your kids about how the divorce might affect their college plans and other future events.

Here are 2 things to keep in mind: 

• The cost of college is rising every year, and it is becoming increasingly difficult to save enough money for tuition. If your kids depend on you and your ex-spouse to help pay for college, it is essential to discuss how the divorce might affect those plans.
• In addition, if you and your ex-spouse have been taking family vacations together, your kids may be wondering if they will still be able to go on those trips. It is vital to discuss how the divorce might affect future vacations and other family events.

23. Get A Side Hustle

There are many benefits to getting a side hustle after a divorce. It can help you financially, give you something to focus on outside of your divorce, and help you meet new people.

Fiverr.com is a great place to start your side hustle. You can offer your editing, design work, writing, and more. Fiverr is a great platform to start with because it’s easy to use and has millions of potential buyers.

Starting a blog is another excellent option for a side hustle. You can write about your experiences, share tips and advice, and connect with other divorcees. Blogging can be a great way to help others who are going through a divorce, and it can also be a great way to make some extra money.

And if you use Bluehost, you can create your own blogging business for only $2.95 a month.

FAQ

How Are Finances Split After Divorce?

After a divorce, your finances will be split up according to the terms of your divorce settlement. This can include dividing up your assets (such as your house, savings, and investments) and any debts you may have. You and your ex-partner will need to figure out who will pay for what and how to budget your money going forward.

Who Can I Go To For Divorce Financial Advice?

There are several places you can go for divorce financial advice. You can speak to a financial advisor, lawyer, or accountant. You can also find information online or through support groups. In addition, many government programs can offer assistance if you struggle to make ends meet after your divorce.

What’s The First Thing I Should Do Post Divorce?

The first thing you should do post-divorce is taking some time for yourself. This can be a difficult and emotional time, and it is vital to give yourself time to recover. Once you are feeling better, you can start thinking about your finances and how you will manage them going forward. You may also want to speak to a financial advisor or accountant to advise your specific situation.

Can I Support Myself After Divorce?

Yes, you can support yourself after divorce. You will need to budget your finances carefully and make some lifestyle changes. However, with careful planning and budgeting, you should support yourself financially.

How Do I Become Financially Independent After Divorce?

There is no one-size-fits-all answer to this question, as the best way to achieve financial independence after divorce will vary depending on each person’s unique circumstances. However, some general tips can help anyone in this situation:

1. Review your expenses and create a budget.
2. Invest in yourself by taking classes or learning new skills that can help you earn more money.
3. Make a plan for your future by setting financial goals and working towards them.
4. Stay positive and motivated, and remember that you can achieve anything you set your mind to.

Summary

You have what it takes to succeed. So believe in yourself and take these 23 tips to heart as you start your new journey.

Divorce is hard, but managing money doesn’t have to be. You can get on track and create a foundation for a successful future with a bit of effort.

Good luck. 😊

What tip will you use?

Will you use Personal Capital to help you organize your finances?

Or will you use Fiverr to start a side-hustle to make a few extra bucks?