When you get a divorce, you may think your finances are going to be damaged for some time. A divorce can be costly, and you will now have to take on bills and pay for the things you need without a spouse to split the bill or support the costs in some ways. There are some ways you can make things easier for yourself, though, like by making a budget, revising your will and creating an emergency fund.
When you make a budget, the first thing you’ll probably notice is that you’re spending more money than you used to on necessities. If you once paid only $400 toward your mortgage, you could now be paying the whole $800 bill. Sit down and think about how much money is coming in as an income and how much is going out to bills. If you don’t have enough, look into ways to cut down on your expenses.
Revising your will also makes financial sense following a divorce. You’ll want to update your beneficiary designations, so the money you’ve saved doesn’t go to the wrong people. You should also make sure that your former spouse isn’t entitled to any of the payouts in case of your death, if you feel that is appropriate in your situation.
Finally, create an emergency fund. An emergency fund is an amount of money you have saved up for sudden emergencies; a broken down car, unplanned home expenses or medical emergencies can all cost a small fortune. Having this money makes sense, since you no longer have a spouse to fall back on.