Starting Your Financial Recovery After a Divorce

Divorce can lead to you taking a big hit financially. At the very least, you are likely to lose a second source of income, which means you may need to adjust your lifestyle to meet your new financial reality.

Below are some steps you can take to begin your financial recovery after a divorce:

• Don’t procrastinate: Be prepared to make some immediate financial changes in your life. The sooner you start, the sooner you can benefit from compounded interest and the steps that will position you for long-term financial success.
• Get organized: You should have a clear, written financial plan that guides you forward after your divorce, along with some clear goals for your finances. Perhaps you want to be able to retire at a certain age or pay off a mortgage within a certain number of years. The plan you develop should address these goals and the smaller steps you must take to achieve them.
• Make savings a priority: It may seem impossible to put money into savings after a divorce, but it’s important to get into this habit as soon as you can. You can set up automatic withdrawals from a checking account into a savings or investment account after you get paid. It will be like you never even had the money in the first place.
• Adjust your lifestyle: You may need to take a hard look at your financial situation and the lifestyle to which you’ve become accustomed, and figure out what you need to do to adjust so that you are living within your means. See where you can cut expenses each month and develop responsible spending habits.
• Keep your eyes on the long-term: If you have investment accounts, do not focus too much on the day-to-day swings of the market. A financial planner can help keep things in perspective, allowing you to stay focused on your long-term goals.

For the guidance and advice you need before, during and after the divorce process, contact an experienced Long Island family law attorney with Bryan L. Salamone & Associates.