Divorce is likely going to be an expensive endeavor, but the cost may be worth it if you are miserable in your marriage. There are many things that you can do to take control of your finances now. In fact, it is imperative that you take the time to think carefully about money matters as you embark on a new chapter in your life.
The need to get your finances in order is important. When you were married, you had your spouse’s income to help support your life. Now, you will rely only on your own income. This is a tough transition, but using these tips may be to your advantage:
Keep track of your expenses
One of the most important things that you can do is to keep track of your expenses. You need to know where your money is going. You can then create a budget based on your current income
Not only will this help you to plan for responsible spending, it gives you an idea of what you can may endeavor to keep during the property division process. Some assets, such as real estate, can come with expenses like mortgage payments, insurance premiums and tax payments. When you and your ex are dividing up assets, you must have a realistic understanding of your own budget.
Focus on savings
Focus on building an emergency fund. Contribute regularly from your budget to this fund to ensure its growth. Your goal should be to have enough money to cover unexpected expenses or to cover normal expenses if you lose your job. You may have to whittle down unnecessary spending. Skipping a coffee a day that costs $5 and putting that money into a savings account can net you $150 per month.
Build your credit
You might need good credit in the future to buy a car or home. Since divorce can have a negative impact your credit score, take advice from financial professionals to improve your credit over time.
Be sure you make payments on time into accounts in your name. You should also watch the status of accounts your ex is supposed to pay so you can see if those will affect you.