Divorce and the aftermath are not easy, especially because you’ll likely need to figure out how to manage, save and budget your money. In this article, I will aim to give you pointers on preparing your financial life, post-divorce.
Pull your credit immediately
Pull your credit through one of the free credit reporting sites after your divorce is final. You will want to see what your credit score is in order to know the likelihood of acquiring new credit cards and/or loans, and other financing.
You may need to repair your credit. Do not worry. I had lousy credit after law school. A banker friend of mine recommended I sign up with the Lexington Law Firm. Please note, I have no affiliation with the Lexington Law Firm or any other credit repair service. But, I know Lexington works because I used it. My credit score improved over 100 points in less than 6 months.
Point being, sign up with a credit repair service if you need to raise your credit score.
Write up a Budget
One of the important financial tips during a divorce is to sit down and write down all of your monthly expenses. Then, compare your total monthly expenses to your monthly income. You need to know if your income will pay all of your expenses. If not, look at ways to lower your expenses.
Nonetheless, seeing your income vs. all of your expenses on paper is a powerful piece of knowledge to have.
Do NOT rely in Child or Spousal (Alimony) Support
The fact is that support, child or spousal, is rarely enough to solely live on in California. The support calculations are flawed and you’ll likely never receive a fair amount of support. As a consequence, do not plan in living only off of the support you may receive.
On the other hand, you’ll need to count your support payments as a monthly expense in your budget if you are paying support to your husband.
Adjust your lifestyle, if needed
Often, my clients are surprised to learn that they will no longer live the same lifestyle they enjoyed when married. The truth is, you may not be able to provide yourself or children the exact same lifestyle you all enjoyed while married.
You’ll need to make reductions in your expenses.
Regardless, I would never recommend a woman stay in marriage solely to maintain the same level of financial lifestyle at the cost of a stable home.