How to Rebuild Your Finances After a Divorce

Divorce is a last resort and a tragedy for most couples. However, marriages do fall apart; and in the event of a relationship’s collapse, many people can feel lost and frightened at the prospect of facing life without their former partner.

So, how does someone go about rebuilding their life after such an intense bond falls apart?

Make a New Budget

First, it’s important to look at some of the practical aspects of “rebuilding” by really strategizing how to rebuild your finances. Divorce lawyers and the division of assets can take a toll on a person’s savings; even with divorce mediation, the future can seem daunting when the ex-spouse starts to drain some of those resources.

Speaking of divorce mediation – a good mediator / divorce lawyer is key to avoiding an overly messy end to a marriage. It is so helpful to have a neutral third party who is skilled in keeping the peace between two (understandably) emotional people.

Downsize

After the divorce is finalized, evaluate some areas of your life where you can downsize. You have a four-bedroom house – but without your wife and your wife’s office, you only need two rooms. Can you sell your house and buy / rent a smaller one? Or should you rent out your current home and move into a more efficient apartment or loft?

Similarly – do you have more than one car? Do you really need more than one car now that your life is smaller? Sell one – or both – and buy a fuel-efficient hybrid. The money you’ll save on fuel every month can be tucked back into your savings account.

Find Ways to Earn More Money

For women who are dealing with the aftermath of a divorce, the issue is not necessarily rebuilding finances, but actually finding some financial stability. Many wives choose the job of raising children over going out into the workforce – so the challenge facing many divorced women is finding jobs for stay at home moms. These jobs do exist, but it can take some time to find a solid career that will be good for you and your children. While you are doing the legwork of looking for a financially stable and flexible job, it can be a good idea for you and your children to stay with relatives for a while. If you have to work someplace less-than-desirable for a few months, it’s helpful to have a family member nearby who can help with little ones.

The time after a divorce can be painful, but it can also provide you with an opportunity to re-examine your life and your desires. Is there a particular skill or hobby you have that could be transformed into a new job? Is there a risk you’ve been wanting to take at work, but you haven’t put yourself out there because your spouse didn’t approve? Maybe it’s time to really go for those things you’ve previously put on hold.

Divorce is never ideal, and it’s always difficult; but sometimes it can jumpstart a new, positive phase of your life.