Continuing in our exploration of how to prepare for a divorce, it’s time to go back and take another, more thorough look at your finances.
When I got divorced I knew that understanding my finances was ultra-important, but I really just wanted to spend my mental energy on me – on healing – on making me whole again. What I had to realize was that becoming self-empowered over my finances was part of making me feel whole. So I took a step back – I did pulled out the original financial assessment I did at the beginning of the divorce process to review, and ask myself some questions:
- Is my assessment realistic both on how much I will earn and how much I spend on a monthly basis?
- Does my financial plan provide for unexpected expenses (e.g. a leaky roof)?
- What about the necessities outside of traditional bill-paying – like an annual vacation or a new TV?
- Have I calculated my taxes correctly so that I don’t get caught short next April?
- Will my financial picture change drastically in the next few years (expected change in employment; child starting or finishing school; long-term debt payoffs, etc.)
One thing that is the hardest to accept about divorce, is that your financial picture will change, and likely – it will not be as robust as it is now. This is one of the important reasons to align yourself with a financial planner who is experienced in divorce settlements. Adjustments are often necessary, and yet very difficult. Start considering what changes you can make both on the income and expense sides of the coin.
Should you start looking for a different job? Can you work more hours? Should you hold off on getting a new car? Are some of your discretionary expenses adjust-able?
Here are some money-saving tips from The America Saves Coalition that don’t put a big damper in your social life. These tips offer examples of how making some small changes can save you up to $150 a month.
| Tip | Monthly Saving |
| Save $.50 in loose change | $15 |
| Cut soda consumption by one liter a week | $6 |
| Bring lunch to work | $60 |
| Send one free e-card per month instead of buying a card | $4 |
| Buy grocery store brands | $12 |
| Use fewer phone features | $15 |
| Eliminate premium cable channels | $20 |
| Borrow, rather than buy, one book per month | $15 |
| Hand wash, rather than dry clean, one shirt per month | $3 |
| Comparison shop for gas (saving an estimated $.25/gallon) | $4 |
