How to Manage your Finances after Divorce

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How to Manage your Finances after Divorce

A divorce could be a devastating experience, emotionally and of course financially. The best thing to do is to come to terms with reality as soon as possible. Start by reassessing your future goals, right away. Nothing is likely to be the same. You need to start untangling finances that were linked to your marriage and provide funds for the divorce proceedings and for supporting your new life at the same time. Thankfully, there are authorized moneylenders in Singapore who provide payday loans, personal loans and other borrowing schemes for emergency fund requirements.

Alongside approaching moneylenders, there are other constructive measures to undertake too, for bailing you out of the situation. Here are some of such smart moves for helping you build your finances post-divorce.

Stop Worrying

Although easier said than done, worrying simply gets you nowhere. It is energy sapping and it is likely to divert your mind from positive action. So, the faster you shun your worries and get to work, the easier the task will seem. It is time to start rebuilding your life once again.

Take Stock of Finances

Taking a stock of finances will be a twofold exercise. First, make a record of your present income sources along with your taxes and liabilities. Do not forget to record tax payments you will have to make. Second, study your bank statements and credit card statements of the past year. This will give you an idea of your expenses. Once the spending has been recorded, categorize them under separate heads like “spending for kids”, “house rent”, “insurance premiums” and so on.

Now tally your income and expenses for calculating the deficit. You can consider borrowing money in the form of loans in order to make up for the deficit amount for the time being.

Arrive at an Alimony Budget

Now that you are aware of the gap in income, arriving at an alimony budget would be a simple task. The alimony amount would be decided based on several factors including the duration of your marriage, your income status and so on. If you are out of job for a long time, a permanent maintenance amount can also be agreed upon.

Restart your Career

It is time to restart your work life again. Treat it as more of an opportunity. Remember, a regular salary will ease out your financial woes considerably. It will help in managing expenses and also for paying back the loans you might have taken. Going back to work after a long hiatus may not be easy. Getting used to a workplace environment, preparing yourself for a work day routine and matching up to modern day work related requirements could all prove to be challenging.

You might even need to enroll for some training programs for landing a better salary. A positive approach and dash of perseverance is all you need to succeed.

Emergency Funds and Health Coverage

Health insurance can prove to be a substantial expenditure especially if you have been sharing a policy with your husband thus far. Buying a new one at a later stage in life would require hefty premiums. Start working towards building a contingency fund as well. Once your salary is back on track, this task would be easier to accomplish.
Most importantly, try to come to terms with the situation as quickly as you can. Accept the change and move on to better things in life.

To read our previous article, please click here.