Navigating Finances after a Divorce

The first year after divorce is toughest from a financial viewpoint.  Adjusting to a new cashflow position, dealing with expenses on a single income and managing the financial stability of yourself (and possibly children) are all hurdles that have to be faced and conquered to maintain financial success going forward. This is where seeking financial advice can be beneficial in those early days.

Navigating this new landscape will have its challenges if you have not had the sole responsibility of managing the household finances before, but with careful planning and consideration, you can be confident that you are on the right track to effective solo money management during and after divorce.

New Spending Plan

Assess your new income and expenses position and identify any surplus that can be directed towards financial goals, for example, emergency savings or funding holidays.  Having an emergency fund will provide security that you can cover any unexpected expenses that arise.  75% of divorced women will not receive full child support from their ex-spouses so always plan and factor in a buffer to ensure children’s expenses are met.

Identify Financial Goals

Post divorce is the opportune time to think about your individual financial goals and what the next phase of life looks like for you.  This may be buying a property, eliminating debt or building towards a comfortable retirement.  Whatever you would now like to achieve with your finances, having a clear financial plan to articulate next steps and identify what’s possible, will help you maximise your new financial position and improve the likelihood of achieving your individual goals.

Monitor Financial Progress

It is important to monitor the financial progress you are making as you rebuild financially after divorce.   Having regular financial reviews with your Financial Adviser with tracked progress and financial modelling for the years ahead will provide clarity over what you have already achieved and what you can accomplish going forward.  Because, as adjustments are made to post divorce finances and goals are ticked off, financial plans can be adapted to ensure you are always on track to achieve your identified objectives post-divorce.

Recovering financially after a divorce can take time and it is essential to have a solid financial plan in place and be patient whilst you rebuild.   Receiving guidance through this period will provide some financial comfort whilst you focus on emotional wellbeing and successfully navigate the next phase of life.

If you would like a confidential chat around your finances and divorce, please reach out to our Financial Adviser Jodi Escudier on 9381 8779 or jescudier@boutiqueadvisers.com.au