In marriage, sometimes divorce is the best option. Whether the separation stemmed from infidelities, financial problems or just falling out of love with each other, divorce is still worrying. If the divorce is due to financial problems in the marriage, then it can get pretty ugly.
One of the first adjustments you’ll have to get acquainted with is living off one income again. This could be quite difficult if your spouse was the breadwinner in the family and you didn’t have to work, but it’s not impossible to do. You will just need to cut back on your expenses and be realistic with your finance.
The lifestyle you had while you were married, is more than likely not going to be the same lifestyle you will be able to continue after your divorce. The sooner you realise that the faster you can financially move forward.
If you’re currently going through a divorce, or feel that your marriage is heading in that direction, don’t be afraid, and know that you don’t have to go it alone. This is indeed a stormy time, not only from a relationship point of view but also from a financial point of view.
If you have experienced divorce and need a little help on how to financially recover, consider these tips.
Downsize to a Smaller Home
When you got married, you and your spouse bought this big gorgeous house. It had multiple bedrooms, a “man cave,” and a backyard big enough to host an entire block party. Now that you’re divorced, you don’t need that big of a house. This is the perfect time for you to downsize and sell your home.
Emotionally, it may be hard to give up the home that you spent so many happy years in, but given your newly acquired financial situation, it may not be feasible. With houses, mortgage, property taxes, repairs and other expenses occur that you may not be able to handle on your own.
For the time being, it may be financially wiser to move into an apartment, where you’re paying rent, and all repairs will be handled by the apartment complex and not out of pocket.
Start Your Own Business
In your marriage, you may have had a spouse that said you never had to work. At the time, you had no problem being a stay-at-home wife and mother, but not working really isn’t an option anymore, so you have to get back into the workforce.
Now, getting back into the workforce doesn’t necessarily mean getting up and head to a 9 to 5 job … you can actually start your own business. When you were married, you would always host these extravagant parties at your home and prepare the food yourself. You did all the decorations and everything else by yourself. Why not put those skills to work and start your own event planning business?
This is the time for you to get a fresh start in life, and what better way to rebrand yourself and your company as a businesswoman in the event planning business. This will allow you to do things on your own terms and become your own breadwinner! Just because you were in a bad situation, that doesn’t that situation has to break you.
How to recover financially after your divorce or separation (cont.)
Access Your Retirement Fund Early
Did you know that a divorce is one of the only few ways that you can get money out of your retirement account early without having to pay any early withdrawal fees?
Cashing your retirement funds can be quite tricky, but it will definitely put you in a better financial situation. If you want to consider this as a financial option for you, don’t make any jump decisions. Be sure to seek the advice of a financial separation expert.
Trade in Your Big Car for a Smaller Car
The theory behind downsizing your home is the same as downsizing your car. When you’re married, there are either two incomes, or one big one, that allows the family to have an extravagant car. After the divorce, the income level is down to one person, the car that has all those fancy features may have to be traded in for something more financially feasible.
The car might be really nice and you hate to let it go, but you also have to look at it as starting new. If there’s really no true reason as to why you need such an expensive and lavish car, you really should consider trading it in for something more affordable for you.
Further reading: How to get back into shape after your divorce.