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Reclaiming financial independence after divorce

On Behalf of | Sep 17, 2021 | Firm News

One of the challenges many people face after divorce in Tennessee is the often-unanticipated change to their financial situation. Depending on the circumstances, many divorcees may experience feelings of uncertainty about how they will rebuild their savings.

Even though divorce gets a bad rap for destroying financial stability, proactive people may significantly reduce the repercussions of splitting from their spouse.

Budget wisely

Oftentimes, divorce causes substantial changes to a person’s standard of living. While divorcees may not have the income to maintain their former standard of living temporarily, hard work and careful planning can help them get back control of their finances.

Budgeting allows people to assess their income in comparison to their expenses. Adjusting to financial independence again may create strain, especially if people overspend. According to Discover, people can find creative ways to cut back on spending including the following:

  • Eating at home more and eating out less
  • Reevaluating extracurricular activities
  • Downsizing home or property size
  • Eliminating cable, personal care services and other fringe expenses

Set smart goals

Even though the immediate circumstances may cause stress after a divorce, people will benefit from thinking long-term. According to AARP, over half of families making at least $50,000 yearly, have an adequate savings plan. Even during the transition to financial independence, people should establish a consistent pattern of saving. Over time, their contributions may grow. People should strategize their goals to steadily work toward rebuilding their savings.

Divorce does not have to be the reason that people live poorly and have no money. Contrarily, with a bit of grit and a lot of hard work, people can use their divorce as an opportunity to rediscover independence and build a successful and comfortable life for themselves.