Admitting that a love you thought would last the rest of your life has ended is a sad realization. One of the most life-changing aspects of the many aspects of a divorce will be its financial aspects. Here are some points to consider while you’re going through the price of divorce, so you will be able to survive its economic impact.
Re-Budget
In certain states like Maryland, divorces are granted on three grounds: mutual consent, a six-month separation, and irreconcilable differences. Once you and your partner have separated, it’s important to sit down and take a moment to compile a new budget. If you continue spending as if you have a dual-income household, your finances could quickly get messy. Compile a list of your bills and rent and subtract them from your monthly income. From there, determine how much money you’d like to put away for savings and how much you can realistically spend for “fun” each month. You may need to cancel any premium television channels, discontinue club memberships, and sell any premium assets you no longer need.
Examine Your Present Assets
To know your financial status post-divorce, look at which financial assets and obligations you have now. You will no longer have the joint income you had when you were married. Your assets can include your income, your car, your bank accounts, and any other significant personal assets. Your current assets may help to determine whether you can afford to continue living in your home or if you can afford to buy or rent a new house. According to Redfin, the median home price in cities like Charlotte, NC has increased by almost 4% each year. In 2023, the average house sold for over $413,000. If you retained your home in the divorce, consider whether selling it may be in your best interest.
Consider Taking on Another Job for Now
Because you’re now living off of one income, your budget may be tight for now. Fortunately, in today’s gig economy, there are ways for you to take on other jobs that work within your current work schedule. Freelance workers alone are expected to make up a majority of the workforce in the U.S. by 2027.
Acquire New Credentials
In addition to living with your new financial realities, your new status as a single person will need a new economic identity. If your spouse’s health insurance covers you, you’ll need your policy. Withdraw your share of money from a joint bank account and open an account in your name. To establish a credit rating in your name, it’s often effective to get a prepaid credit card to acquire a credit history quickly.
Your post-divorce life will be full of changes, and leaning on your divorce attorney for information and support will be essential. Your financial survival will hinge on careful budgeting and learning to survive as a single person.