One of the worst parts about getting a divorce is the realization that your once solid financial situation has been flipped upside down. Sure, the legal process was costly for everyone involved. But for you, it depleted everything you had in savings, and your expenses from this moment forward are set to increase significantly — especially if you’re the one paying child support and spousal maintenance.
The potential for insurmountable debt and future financial ruin exists if you can’t quickly regain control of your financial situation.
6 Tips To Improve Your Financial Situation After Divorce
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Create a new monthly budget.
The first step is to take stock of your current income and determine how much money should be earmarked for fixed expenses (house, car, kids, maintenance, etc.). If there are ancillary expenses and unnecessary spending beyond that, immediately eliminate the ones you don’t need or can no longer afford. Changing your financial lifestyle can be challenging at first, but the sooner you adopt and stick to a new budget, the better off you’ll be in the long run.
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Pay off or consolidate debt, where possible.
Since you already created a budget and have all your debts and expenses written down, look into ways to possibly pay off or consolidate high-interest credit cards, installment loans, etc., while you have the chance. Consolidating balances into one lower rate could save you a few hundred dollars monthly. If this isn’t an option for you, create a strategy to chip away even more at those credit card balances with whatever disposable income you still have.
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Get a second job
If your financial situation after divorce is really tight, it might be time for a second job. A second source of income, even if it’s a weekend job or side gig from home, can help you pay off debts and make up considerable ground financially.
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Get a higher-paying job
If you already have a job that pays kind of well, now is an excellent opportunity to apply for a promotion or look for a job with a different employer that pays more money.
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Consider downsizing to a smaller house
One of the bigger expenses you’ll have moving forward is housing. If you’re the one moving into a new place, look for a residence (home or apartment) that meets your budgetary constraints. If you were awarded the existing home but can’t keep up with the mortgage, property taxes, maintenance, etc., consider refinancing for a lower monthly payment that’s within reason. If that’s not possible, you might need to put the house up for sale.
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Keep tabs on your credit score
Things may be tough right now. But you pay everything on time, your credit score should never be a problem, and it will serve you well when you need to apply for loans or splurge on a new car or bigger house.
Christman | Daniell, has a unique and refreshing approach to the often turbulent and emotionally stressful disputes arising in the context of divorce, child custody, and other family law cases. Our firm anchors its representation and legal advice in principles and philosophies that focus on the long-term best interests of children and families. We are committed to supporting and guiding you through the dark days of marital discord and crisis.
Please call Christman | Daniell for your legal needs today!
Looking for family law services in Collin County, Texas? Christman | Daniell is your premier choice. With years of experience and a deep understanding of the legal landscape, our skilled team is dedicated to helping families navigate complex legal matters. Whether it’s divorce, child custody, or adoption, trust Christman | Daniell to provide compassionate and effective representation for all your family law needs throughout Collin County.
