Maintaining Financial Health After A Divorce
After divorce, moving forward financially as a single person can be overwhelming. After a divorce, adjusting to a new standard of living may be necessary. Indeed, some people are awarded alimony, but even with alimony, you may need to adjust to a new standard of living.
If you recently got a divorce, learning how to maintain financial health is vital. Read on to learn how you can maintain financial health after a divorce.
Why Do People Suffer Financially After a Divorce?
According to research, the financial effect of divorce on a person can last years. Some divorced spouses take up to five years to recover financially. So, why do people suffer financially after a divorce? Firstly, divorce results in a reduction in household income and net worth for both parties. Secondly, some people make financial mistakes during their divorce, which results in them facing financial difficulties afterward. Lastly, there is the cost of the divorce itself. Divorce can be expensive.
Hiring a qualified divorce attorney is advisable if you want to avoid making financial mistakes before, during, or after a divorce. Also, there are several ways of reducing the cost of divorce. For example, you can consider a collaborative divorce instead of going to court.
Effects on Income
Divorce usually means going from a two-income partnership to relying on one income. You might receive alimony, but even with alimony, your cash flow will look different after divorce. And if you are making alimony payments, your monthly cash flow will definitely look different if you rely on one income.
How To Maintain Financial Health After a Divorce
If you recently got a divorce, it isn’t all doom and gloom for you financially. There are several things you can do to help yourself. The following are some of the things you can do to maintain financial health after a divorce;
- Create a new monthly budget – Because your income and expenses look different now that you are not married, you should create a new monthly budget. To create a new budget, you must first write down your income and expenses. Some expenses may be higher, and others may be lower.
- Consider increasing your income – You can get another job, ask for a raise at your current job, or look for a better-paying job.
- Reduce or eliminate expenses – Since your income decreased because of your divorce, reducing or eradicating expenses is a good idea. You likely don’t have room for some expenses in your budget any longer, or at least not at the same level you were spending before your divorce.
- Hire help if you need it – There are many financial professionals who are equipped to help you through this transition. You do not have to do this alone. For instance, you can hire a credit counselor if you do not know how to tackle debt.
The bottom line is that it’s possible to maintain financial health after a divorce. Many have done it, and you can do it too.
Contact an Orlando Family Lawyer
If you need help with any family law-related matter, contact a qualified Orlando family lawyer at Arwani Law Firm.