Tips for Rapidly Rebuilding After a Divorce or Separation

Rebuilding After Divorce

If you are struggling financially after a divorce, you're not alone. Going from one combined household to two separate ones is expensive regardless of your income or divorce settlement. With a little focus, though, you should be back on track in no time. 

Steps to Rebuilding After Divorce

Consider the following steps to recover your financial situation more quickly.

Step 1: Decide that you are going to improve your financial situation.

The most important thing that you can do is to prioritize improving your financial situation. Sure, you may recognize that your finances are not what they once were, but if you don't take the steps to change your situation, you'll find yourself in the same spot months or even years from now.

Decide to start immediately. You'll thank yourself later.

Step 2: Figure out your starting point

Once you've made improving your financial situation a priority, it's important to know where to start. Take the time to write down all of your accounts, including bank accounts, retirement accounts, loans, etc. Document each balance, the most recent return, and/or the interest rate involved.

For savings and investment accounts, include how much you are contributing to those accounts each month. If you have debt, make sure to include whether the interest rate is fixed or variable, along with the minimum payment you are responsible for.

Step 3: Identify the areas where you need to focus

Once you've evaluated your starting point, you'll be able to see areas that need improvement. If the issues aren't clear, start by asking yourself the following questions:

• Is your savings account balance lower than you would like it to be?
• Do you have high-interest debt that needs to be refinanced and/or paid down?
• What about your expenses? Are there areas in which you could reduce spending? If not, do you need to increase your income.

Everyone's financial situation is different so your areas to focus on will be unique to you. If you need help identifying and/or prioritizing where to focus, contact me.  

Step 4: Set goals and create a plan

Once you've decided where to focus, it's time to begin setting specific, measurable, and time-bound goals for yourself. For example, a goal might be to increase your emergency savings account by $10,000 over the next 12 months. It might be tempting to skip this step, but without a goal, there can be no plan, and without a plan, failure is inevitable. 

Use the goal you've set to create your plan. If your goal is to save $10,000 over 12 months, then you'll likely need to put away roughly $840 each month. How will you do that?

• Will you split that amount up weekly?
• Will you change your direct deposit to go directly into your savings account?
• Do you need an additional income to be able to achieve your goal?

Put the plan in place ahead of time so that there's no guesswork as to how you will meet your goal.

Step 5: Get an accountability partner

People who regularly meet their goals are most likely to have accountability partners. Find someone you trust that you can share the details of your plan with. Make sure it's someone who will ask you the hard questions and keep you motivated to press forward with your goal, even when it doesn't feel like fun anymore. 

About Intentional Divorce Solutions

At Intentional Divorce Solutions, we're committed to guiding individuals through the complexities of divorce with an approach centered on empowered choices and respectful outcomes. Our team provides comprehensive support and expertise in several key areas:

• Divorce Financial Planning and Analysis: Providing in-depth financial insights and strategies for a secure future post-divorce.
• Divorce Mediation: Facilitating respectful and balanced negotiations to reach mutually beneficial resolutions.
• Divorce Coaching: Offering personalized support and guidance to help you navigate through emotional and practical challenges of divorce.
• Divorce Support Groups: Creating a space for sharing experiences and finding strength in community support.

Please Note: We focus on providing support and solutions in various aspects of divorce. However, we are not attorneys and do not offer legal advice.

Work With Us

If you are on the journey of divorce and seeking professional, empathetic support, we are here to assist you. Reach out to us to discover how our services can be adapted to your unique needs, empowering you to make informed decisions for respectful and positive outcomes.

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