Financial loss is one of the most common effects of divorce, and it can cause a lot of damage if you do not take immediate steps to prevent it. Knowing how to protect your money could mitigate some of the losses.
Even prior to filing divorce paperwork, consider what steps you will take to secure your finances. A proactive approach will enable you to stay focused on the future despite the turbulence of the present.
Separate needs and wants
A budget will provide considerable direction as you grapple with the changes to your income and financial responsibilities. According to U.S. News, take inventory of your assets and debts. Know where your money is so you can protect your rights and work toward a fair settlement.
Next, make a comprehensive list of needs and wants. Look for ways to reduce your spending. This could look like closing fringe subscriptions, eating at home more often or using public transportation to save on the cost of gas.
Look for ways to increase income
Get creative about increasing your income. If you already have a job, consider other ways to earn money. A side hustle could bring in just enough money to alleviate some of the strain you currently feel. Ideas include working as a waiter or waitress a couple of nights each week, offering tutoring services or working for a rideshare company a couple of days each week.
Realign your goals
Recognize that your goals will look different now than they did prior to your split. Realigning your finances to match your goals can help you identify what you need to do to stay on track. Your divorce does not have to prevent you from living a productive and financially secure life.