Assess your situation
Because a divorce can leave you
feeling scattered and confused,
one of the first things to do is
assess your current financial
situation in order to make
informed decisions about what
your new financial reality might
look like.
If you don't already have a
good understanding of your
monthly household expenses,
now is the time to get a handle
on them. How much does your
household spend each month on
food and utilities? How much is
rent or the mortgage? Carefully
examine your budget, review your
bills and take time to determine
what it will take for you to live
comfortably.
In most cases, the income
that once supported a single
household must now be stretched
to support two. While you may be
entitled to some form of financial
support – either spousal or child
support – when putting together
your new budget, it's a good idea
to take into account the loss of
at least a portion of your former
spouse's income.
As part of establishing your
new budget, it's also important
that you take control of your debt
and credit. A divorce can have a
negative impact on your credit
rating, so you should take steps
to establish good credit in your
own name. Avoid the temptation
to rely on credit cards to pay for
extras, and if you have debt, try to
put a plan in place to pay it off as
quickly as possible.
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