Starting Over Financially After Divorce: Key Steps to Take

Divorce feels scary, especially when you think about money and your financial future. But here’s the good news: you can rebuild your financial life stronger than before. The key steps to take involve choosing a collaborative approach over a messy, expensive court battle.

• Open new accounts immediately – Get checking, savings, and credit cards in your name only
• Check your credit reports – Look for errors and start building your individual credit history
• Create a realistic budget – Your expenses will change, so track every dollar carefully
• Update all beneficiaries – Change life insurance, retirement accounts, and investment beneficiaries

Unlike traditional court-litigated divorce, collaborative divorce keeps you in complete control. You work with qualified financial experts who help you both understand your options clearly. In litigation, the court can make important decisions about your money without knowing your family’s unique situation.

A Collaborative Divorce process stays private and focuses on solutions, not winning or losing. You’ll generally spend less on legal fees and more time planning your actual future.

Working with neutral financial professionals during your divorce provides you with valuable tools for life after. They teach you budgeting skills and help you understand investment options. This education continues to serve you long after the divorce is finalized.

Traditional litigation focuses on fighting over every dollar. Collaborative divorce focuses on creating two successful financial futures.

Your collaborative team helps you think beyond the divorce papers and into your future. They’ll guide you through tough decisions about whether to keep the family house or sell it. You’ll recalculate retirement goals based on your new single-income reality.

Building an emergency fund is now absolutely crucial. Start small and work toward saving three to six months of living expenses.

Starting over financially after divorce isn’t just about surviving – it’s about thriving. With the right approach and support team, you can build the secure financial foundation you’ve always wanted.

When you utilize the Los Angeles Consensual Dispute Resolution Family Law Association, you can rest easier because you will know that when your divorce is finalized, each party involved, including your children, will be better prepared to face the future with confidence. Contact us today!

Note: This information is general in nature and should not be construed as legal/financial/tax/or mental health advice. You should work with your attorney, financial, mental or tax professional to determine what will work best for your situation.