Divorce and the proceedings that follow will always be exhausting. No matter what the circumstance is, the process of removing yourself from a marriage is physically, emotionally, and mentally challenging. But apart from these, another overlooked aspect of divorce concerns money: financial stability.
Rebuilding your new life also means recovering financially.
Financial freedom is one of the basic foundations of your new life. Whether it’s longing to be debt free, starting your own business, or rebuilding the retirement nest alone, there are steps to take to begin your journey.
Most divorce attorneys serving in Denver, Colorado acknowledge that new divorcees are still in a flux of raw emotions. Everything, they say, will be overwhelming. With the basket of emotions and the kids to think about, adding finances to the mix makes the entire debacle crazier.
But whenever you procrastinate with working through personal finances, you raise the negative stakes for the future.
Start as early as possible. Think of this as an opportunity to start fresh with everything, including your bank account. Commit to taking action for a better future.
After you take the first step, it’s time to work. Gather all financial documents in one place and take inventory of your current financial lifestyle. This should include income, assets, liabilities, and other expenses. Make a spreadsheet for these factors and start itemizing all of your accounts, loans, and credit lines.
Knowledge is powerful — in the future, you’ll be amazed by the empowering feeling that comes with gaining information about your personal finances.
Create a Budget
Once you sort out the inventory of expenses, compare these with your current budget. After the divorce, adjustments with money are necessary. Consider your new financial standing and tweak the budget accordingly.
Rebirth after divorce need not solely manifest in the physical and emotional areas of your life. Sometimes, your finances are the best evidence of your new life.