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Tips for becoming financially independent after divorce

On Behalf of | Aug 9, 2022 | Divorce

Finding your financial footing after your divorce might be challenging, but it is not impossible. With some planning and restructuring, newly-divorced Michigan residents can reach financial stability.

Accept your situation so you can move on

It might be tempting to dwell on the uncertainties that lay ahead when you are facing the end of your marriage . However, once the step towards divorce has been taken, it is important to find acceptance for the situation, understanding that it is a hard process, but believing in yourself and how you can overcome these challenges. This might be particularly worrying for you if you had been a stay-at-home spouse or financially dependent on your higher-earning spouse.

Embrace planning for the future

The way to financial stability is found by looking ahead. Single life means life under one income, so even before you get there, you need to anticipate what that life will look like. This involves making a budget, in which you should include:

  • Anticipated income
  • Rent or mortgage costs
  • Utilities
  • Health-related costs, such as insurance, therapies, etc.
  • Groceries
  • Additional expenses

You should also work on establishing or building your own credit, which you will need to make larger financial decisions later in your life. Additionally, you should not overlook your retirement planning.

Be flexible about non-essential expenses

Your budget will show you the reality of your financial situation. If your income cannot cover all your expenses, you will need to identify those that are not essential for living, since you might need to give some of them up, even if temporarily. Some of the changes might be major, such as giving up the family home to avoid a large mortgage you cannot afford. Other changes might be less drastic, such as freezing or quitting your gym membership until you can afford it again.