When the dust has settled and the paperwork is complete, many California residents who emerge from a divorce look around and realize that the entire landscape of their lives has changed. Moving from married to single can affect virtually every aspect of one’s day-to-day life, and finances sit at the top of the list of things that have shifted. Many people find that there were major errors made in the manner that finances were handled during their marriage, and the timeframe immediately following divorce is ideal for implementing new financial strategies.
Perhaps no change is more important than establishing a detailed budget. Having a handle on how much money is flowing in versus what is going out is the cornerstone of financial success. This is true regardless of how wealthy an individual may be, or how complicated their financial scenario.
Another savvy financial move involves making changes that reflect one’s new status as a single person. Divorce changes a wide range of things, including one’s insurance needs, credit availability and investment plans. Taking the time to sit down and reassess one’s financial goals and stability is the best way to make informed decisions regarding these issues. Even if no change is necessary, there is much to be gained by taking an active role in managing both income and debt.
After divorce, one’s life is once again one’s own exclusive domain. This is especially true in regard to financial matters. For many in California, the aftermath of divorce is the best time to reassess one’s financial goals and learn from past mistakes. The reward is not only increased financial stability, but a better sense of control over one’s own future.
Source: Fox Business, “Starting Your Financial Life Over After Divorce,” Andrea Murad, March 22, 2013