Divorce And Your Personal Financial Management

By Brad Wilson

Divorce can be devastating. It can leave you heart-broken and lonely and can wreak havoc on your lifestyle, your friendships, and even your budget. You might be loaded with debt and credit destruction and you have to deal with the fact that half of the normal monthly income is gone.

But it doesn't have to cause so much ruin. Just because you faced a divorce doesn't mean your finances spiral out of your control. You can re-evaluate your personal financial management now, with the help of a few tips and the right software, so you can maintain financial stability.

How Divorce Affects Your Finances- And How to Deal With it

Two incomes is usually expected from a marriage. It might be that one of the partners stays home while the other generates enough income for both of them. When you get divorced however, everything changes. You are left with one income and all of the responsibilities in the household. This means if you were previously responsible for taking care of the house and the children, you now need to find a job. And for those who were at jobs they might need to cut the hours in order to keep the home maintained.

Adjusting to this situation isn't going to be easy but creating a budget can be a good start.

Make a list of alimony, child support or any other income.

If you are required to pay child support or alimony, create a list of expenses. Also include monthly regular payments like bills, utilities and mortgage payments.

Compare your income and expenses. Figure out if there are some items that can be eliminated. For instance, you might be able to sell your car for one that has a smaller payment you can pay off more quickly. You can also move to a new location or smaller rental home. See if there are any subscriptions that you can do without.

Consider your wants and your needs. These are two different things. Needs include shelter, food and medical care. These are things you can't live without. Make it a priority to afford the needs first.

Don't rack up new debt right now. You might end up destroying your personal financial management with a new credit card payment or car loan. It paints a very gloomy picture of your financial future and should be avoided at all cost until you are back on your feet after the divorce.

These aren't always permanent changes you are looking at. Once the dust settles you will be able to get back on your feet. The best thing to do is track expenditure and savings with your personal financial management budget online software.

About the Author:

PocketSmith has led so many people to proper personal financial management. They provide all the best personal finance software tools.