Tips for Rebuilding Your Finances After a Divorce | Allan Brandon Tise PLLC, Attorney at Law

You've survived your divorce and your friends and family are urging you to take care of your emotional needs. This is an important step to healing, but while you tend to your emotions and mental state, there is another critical aspect of your post-divorce life that must be addressed: your finances. Here are a few simple tips for anyone who wants to rebuild and secure their finances after a divorce.
Create a New, Updated Budget If you've always budgeted for yourself, your spouse, and your combined incomes and expenses, creating a new budget with your needs in mind can be tricky. Start by creating two simple lists: your income and your liabilities. Remember to add any alimony and child support to the appropriate lists, as well as pre-divorce obligations such as maintenance fees for the upkeep of your former home. Next, create a thorough breakdown of all your expenses to determine what you can afford and what you may need to sacrifice. Remember, some of your everyday expenses will be cheaper, such as food, gas, and entertainment. Talk to a financial planner if you are having trouble creating a realistic budget, including expenses and luxuries you may need to sacrifice while you get back on your feet.
Create a New List of Financial Goals Write down a list of your short-term and long-term financial goals. Focus on the short-term goals daily and keep the long-term goals in mind when you create a budget, make any major purchases, or change careers. Here are a few things you might have on your short-term goals list:

• Consolidate and pay down your credit cards

• Negotiate your cellphone and cable bills

• Save for a family trip

Your long-term goals might include your desire to:

• Retire by a certain age, such as 60

• Pay off your mortgage.

• Pay for your child's college education

Keep the list of your short-term financial goals in a noticeable spot, such as on your refrigerator. Modify your short-term and long-term goals as needed to reflect your new financial situation.
Avoid Unnecessary Spending If you want to invest in a new wardrobe or buy that big screen television your former spouse always discouraged, be cautious of impulsive purchases. When spending any money post-divorce, make sure you have a handle on your financial outlook and have created a budget. Especially if you are now a single-parent household, you are now financially responsible for all the household expenses. Create a rainy-day fund rather than splurging on a luxury. This will ensure that if there is a medical or household disaster, you will have the extra money set aside to cover the expense.
Increase Your Income Of course, there is only so much you can do to cut back on your spending. If you as the sole breadwinner struggle to make ends meet, find ways to increase your income. For example, ask your employer for a raise or if you can pick up extra hours or shifts. If necessary, look for a second job that will accommodate your new schedule. Sell any items you received in the divorce that are no longer useful. Talk to your attorney if you are a financially struggling single parent and do not have a child support plan in place. Many divorced couples mistakenly believe that once the papers are signed, either spouse cannot ask for child support. However, if you have children, are the custodial parent, and struggle financially, your attorney can help you either modify your existing child support payment arrangement or initiate the process to get child support. If you are recently divorced, getting your finances in order should be a top priority. Contact the professionals at Allan Brandon Tise, PLLC , with all of your questions.