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Top tips for dealing with your finances after divorce

The emotionally challenging nature of divorce can leave separated couples stressed, frustrated and unsure about what the future holds. After all, divorce and dissolution can cause a significant shake-up to your routine. When it comes to managing your money and financially supporting your family, attempting to maintain this routine as it was before the separation will be near impossible, and only cause more anxiety.

Setting aside some time to deal with your finances will prove a productive activity, not only in reducing stress, but in determining a clear path to help you get your life back on track.

1. Agree on a fair settlement

In order to move forward comfortably from your divorce, it’s essential that you secure a fair financial settlement that reflects your specific requirements. If this can be achieved through mediation or collaborative law, you will save yourself a significant amount of money by cutting out the court fees.  It will also provide the opportunity for both you and your partner to listen to each other’s concerns and reach a decision that truly takes into account each persons financial circumstances. The settlement you agree on will play a large role in your financial stability post-divorce, so securing a fair sum is absolutely essential.

2. Take control of your finances

With so much to consider, thinking about money might make you nervous. However, getting a grip on your finances will be worth the effort and allow you to move on with your life and boost your self-esteem. The first step is to separate your finances: that means closing your joint accounts, paying off the debts you jointly owe and cancelling the credit cards that are under both names. After all, the last thing you want is a bitter ex running up credit card debt in your name. It’s also a good idea to put together a budget, to work out what money you have coming in and how much is going out each month. If you’re worried about financial hardship following divorce, it may be worth checking whether you are entitled to any government-funded support schemes such as benefits or tax credits.

3. Establish a new routine

Before your separation, it’s likely that you had a certain routine in place: from the monthly shopping to family vacations and after school activities for the children. The truth is, if you’ve recently separated, you and your ex-partner will likely have to make adjustments to your lifestyles. It doesn’t mean cutting out the essentials, or even all the luxuries: it’s just about being realistic. If you have children, try to keep the focus of your new routine on their needs, but don’t lose sight of your own happiness. Your new, post-divorce routine should strike the balance between stability and satisfaction: just because it’s the end of your relationship, it doesn’t mean it’s the end of your life. It’s just a time to reflect and rearrange your lifestyle.

4. Update your insurance policies and your Will

The aftermath of divorce leaves separated couples with a lot to take on. Therefore, it’s only natural to forget about the little things. However, what may seem like a little thing now could cost you significantly in the future, so it’s smart to take a fine toothcomb to your financial commitments and identify any necessary changes. Getting in touch with any insurance providers to inform them of your separation will ensure you’re not financially linked to your spouse. Another vital document to update is your Will, as in many cases; married couples will name each other as the primary beneficiary. Forgetting to make this change could cause significant grief in the future, particularly when one or both parties decide to remarry.

5. Speak to your solicitor

Following these tips should aid in taking away some of the sting of what can be an emotionally and financially taxing experience. However, if you need further advice about how to handle your finances and support your family following divorce, speaking to a specialist solicitor should help to provide guidance, reassurance and support to help you get back on your feet.

At Crisp & Co, our dedicated team of divorce and finance solicitors understand how challenging separation can be. That’s why our expert team are always available to listen to your concerns, providing tailored advice to help secure a fair, comfortable future for you and your family.

To make an appointment with a member of our friendly team, just get in touch today on 0203 857 9885 or write to us using our simple enquiry form. We’ll be more than happy to help, no matter how complex your situation.

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