How To Thrive Financially After Divorce

The divorce process is long, stressful and expensive. One of the greatest sources of stress for New York residents who go through a divorce involves their finances. While going from a dual-income home to a single-income one is difficult, there are some steps that you can take that put you in a position to thrive financially after your divorce.

Know what you have

It’s common for one spouse to know more about a couple’s finances than the other, but after a divorce, both parties have the same level of information. The judge issues a divorce decree, and that decree determines how much money you walk away with. Sit down after your divorce and make a list of how much cash you have, any accounts that are in your name and any investments funds awarded to you in the divorce.

Review your credit score

You can get a free credit report from the three main credit bureaus once a year. Ideally, you and your ex won’t do anything that adversely impacts the other’s finances, but some divorces take adversarial turns. Shortly after your divorce, pull your credit report to make sure that your report doesn’t have any adverse credit that isn’t your responsibility post-divorce.

Make a new budget

If you and your ex both worked, you probably got used to living a dual-income lifestyle. As a newly single person, you’re forced to recognize that you’re financially responsible for yourself. Make a budget and commit to sticking with it.

Look for ways to increase

Part of your budgeting process includes cutting unnecessary expenses. However, there are only so many cuts you can make. Look for ways to grow your income, even if it means taking on a second job or a side hustle until you get your feet under you financially.

There is no avoiding the financial stress associated with a divorce. However, applying these tips to your life can set you up for success as you embrace the next chapter of your life.