A divorce can be both emotionally and financially difficult. On top of that, you may be overwhelmed with the prospect of how to move forward with your new life. To help ensure that you are set up for financial success, we are here to share our top tips for managing your money after a divorce.
1. Create a realistic budget for yourself
No matter what, your finances will change after a divorce. It could be a change in net income or your assets or where you live, and you’ll need to be prepared. Create a budget to help you transition into this new reality. First, collect statements from all your expenses so that you can get a better understanding of where you stand financially. Then, you’ll be able to see what expenses must be eliminated or where you can save more.
2. Work on your financial goals
Along with creating a budget, you should come up with both short and long term financial goals. Your short-term goals may include gifts for your children’s birthdays, annual trips or vacations, and the costs of holidays like Thanksgiving. Long-term financial goals may include buying property or being debt-free. Once you know your income and expenses, you’ll be able to work towards these targets.
3. Set up an emergency fund
The recent health crisis is a testament to how vital it is to have an emergency fund set up. Having that extra protection may help you if an unexpected accident were to happen. Ideally, you want to have three to six months’ of living expenses set aside, but we know this is extremely challenging. Even then, having a $1,000 saved up will help you face an emergency, such as a car repair.
Divorces can turn your life upside down, but our team is here to help. At the Gill Law Group, our attorneys and in-house CPA can take a look at your financial situation and help your chances of receiving the best possible outcome.
Contact the Gill Law Group at (949) 681-9952 to begin your free virtual consultation today.