Financial Management Tips For Life After Divorce

After a divorce, life as you know it changes significantly. With nearly half of all marriages ending in divorce in Canada, millions of people will inevitably be dealing with the emotional fallout of this experience. And while divorce can be stressful in so many ways, surviving financially can become one of the most significant hurdles any individual can go through after the divorce process is completed.

A divorce can have extensive and long-lasting financial repercussions. Thus, it is critical to seek professional legal counsel early on and learn how to manage your money during this process. 

You’ll also need to make joint decisions about your future with your ex-partner that will impact both of you once the divorce is finalized. Dividing property is one of the more difficult tasks to manage, so be prepared to discuss how you will divide the assets before entering into a discussion. If you have any, you and your spouse will also have to agree on how to pay off years’ worth of debt together. After everything has been taken care of, you can now start making a fresh financial plan for your future. 

Here are a few tips to get started:

Now that you’re divorced, it’s an excellent opportunity to take stock of your financial life. Make a list detailing your income, expenses, assets, and liabilities. You should also check your credit report to see if everything is in order and if there’s any sign of outstanding debt from joint accounts or debts incurred without your knowledge by your former partner.

When you and your family are struggling, finding financial help is key to survival. Social assistance may be an option for you if you’re a single parent. However, first, check if your income disqualifies you from receiving any type of assistance. Additionally, research whether or not you qualify for government grants like Working Income Tax Benefit, Employment Insurance and Family Benefit, or Canada Child Benefit.

Now that you are your sole provider, it is more important than ever to save money instead of spending lavishly. Examine your budget and find areas where you can cut back; this may not be easy initially, but it will pay off in the long run. Money won’t be as big of a concern when you’re focused on living within your means.

After a divorce, you may find that you’re unable to handle the expense of keeping your current home. If your house has been paid for, then you should probably keep it, seeing as paying utilities is much cheaper than renting monthly. But if you’re currently renting, moving to a smaller place could save you quite a bit of money on rent and utility expenses.

After a divorce, most people feel like they have lost part of themselves. They may feel like they are no longer the same person they were before the marriage ended. There are a number of things you can do to help yourself heal and grow. This can be a difficult time to invest in yourself, but it is crucial to do so. 

By investing in yourself, you will help yourself to heal and grow. One way to do this is to invest in yourself by taking some online courses or attending workshops that will help you further your career and increase your earning potential. There are also many self-help books available that can help you to improve your mental and emotional health.

If you need help managing your divorce proceedings, call us for a free consultation with one of our divorce experts today!