4 Tips to heal your financial woe after divorce

It’s quite tough to recover from such emotional, mental and financial hardship of divorce. Divorced couple mostly end up emotionally break down, bankrupt, after come across the huge cost of separation. It’s the abrupt changes of lifestyle and newly acquired financial burden that lead people to go into debt after divorce.

If you one of them who is dealing such trauma and financial stress due to divorce, then you should make some changes in your money management way.

4 Tips you can manage finance after divorce

Many peoples are struggling to manage debts, electric bills, loan payments and credit card bills due to bad financial condition which has come to them after divorce. This article will help you to manage their finance in a better way after facing such situation in life.

  1. Know your current financial condition

Your first and foremost duty is to get a proper picture of your current financial situation such as: current income, expenses, and financial burdens. Once you know your current finances well, you can locate the areas, where you tend to overspend and eventually can curtail expenses. If required, make budget and follow it, till you can put your finances in order.

  1. Consider extra work to fatten up the income

In fact, if you figure out your monthly income falls short to cover your expenses, try to find different ways to expand your income. Look for part time job or start your own business. If you figure out that you have some skills or “stuffs” that others are willing to pay for, start utilizing them. Work as a freelance writer, a bookseller on eBay and Half.com. Conduct a yard sale to add some extra bucks to your wallet. Make sure you don’t use this extra income to splurge on a new dress or expensive dining out, and apply it to pay your debts.

  1. Manage all credit card accounts properly

Make sure that you and your spouse split up your credit card accounts right after a divorce, because if you have any joint debts and your ex- spouse miss payments on it, it will adversely affect your credit score as well. In case you still have some joint accounts, close them or change them to individual accounts. It has an added advantage. In can you can’t afford to pay off joint debts, you can transfer your balance from joint to separate account.

  1. Think about the joint assets and debts

In case you have any joint assets, better sell them off and in case you have any joint debt, consider refinancing it, so that it remains in one person’s name. In case your name is still there on the mortgage, while you no longer live in that house, then you could be held legally liable to make the mortgage payments. However, selling possessions will not only make you free from all obligations, but also provide you with sufficient money to clear your pending bills.

Conclusion

You need to polish your financial skills as you have chosen the journey alone. So, try to know about all basic financial task such as (banking, investing, budgeting, credit card knowledge) so on. You can read financial articles online and can follow forum as well where you can find many people going through the same scenario. You can ask your own question and can get the expert’s answer as well. So, be active and think possible. Many good  things are waiting for you.