Best Financial Tips for Newly-divorced Parents Who Want to Move Forward

3 Mins read

Going through a divorce isn’t easy. Aside from its emotional aspect, there are other matters in life it can affect. One of those is finances. Everything can involve money nowadays. That’s true, especially if you’re dealing with legalities such as a “painful-to-the-pocket” divorce. 

Reports state that an average divorce could cost $15,000. That’s a lot if you think about it. The money could be used for something else. It’s just unfortunate that divorce is something as important as other things. This makes it more difficult for people since it will be a dilemma for them. But they have to do it, which leaves them without a choice.

So what can someone do to avoid financial struggles after the divorce? How can a divorcee survive their financial state in the first years of being separated? Here are some useful financial tips for newly-divorced people.

Organize the Papers 

Getting through a divorce should prompt you to organize all your financial documents. All the paperwork must be reviewed as soon as possible. One major example of this is finding which bank accounts you could have access to. You may have joint accounts with your partner that you have contributed to a lot. Make sure that you know your rights with it. If all these preparations are too much for you to handle, you can seek help from a divorce lawyer. This way, you can be guided on handling financial matters legally.

Plan Your Housing

Ending a marriage isn’t easy for some people. Some can only end it officially if they get rid of things they are emotionally attached to. Some even have to move to other places. It’s necessary for the sake of forgetting all the memories they had with their partners. If you’re in a similar situation, you should plan your move. This is because moving to another place will cost you some money. Getting a divorce itself is already expensive. These additional expenses post-separation can make divorce even more costly. What you can do is check out listings for the most affordable apartments. Make sure it fits your budget, so using tools that can calculate mortgage rates for you is a must. If you’ve saved enough, you can actually buy your own home and start a new life. If moving is the only way to reset, you have to be fully prepared for it.

Get a Side Hustle

Going through a divorce should make you realize that most things will be different. That includes your financial situation. It would largely affect you, especially if you and your former partner used to help each other with finances. Having custody of your children may also be another factor affecting your finances. You will spend more because your other half cannot provide a lot anymore. If you can’t afford to find another job because you have to take care of your kids, you can find a side hustle instead. There are a lot of jobs that can be done remotely. These jobs will not require you to go to the office. Content creators and virtual assistants are so much on-demand right now. If you have extra time, you can acquire skills by studying online. You can then use these skills to apply for jobs that you can do at home. So you can be with your children while earning extra.

Save for Child Support

You may be awarded financial assistance from your ex-spouse. It’s truly going to help you raise the kids. But if you can earn extra from your side hustles, you can save the money for child support by putting it in your family savings. Or better yet, put it in your children’s college funds. This way, you would have readily available funds that you can use once your children have already decided to go to college. This can also serve as emergency funds for your family.

Start a Business 

People who just got divorced can start a business if they have time in their hands. This applies to those who don’t have children to take care of. Or perhaps, they have children but can ask someone to look out for them. Starting a business may not be easy at first. It’ll take a lot of studying. You should know the formula for making a business thrive. You should also have an idea about the common reasons why businesses fail. Use this knowledge to succeed in your business venture. The income your business would generate could make up for the amount your former spouse used to provide for the family.

Going through a divorce should teach you how to handle things by yourself. Managing your finances will matter a lot, and you should know how to do it. It will be challenging at first, but you’ll surely get the hang of it if you know how to handle it.