Helping Families Navigate The Difficult Road Of Divorce

How to achieve financial stability after a divorce

On Behalf of | Aug 9, 2022 | Divorce |

A divorce may lead to an increase in personal expenses, damage your credit score or have other negative consequences for your financial future. However, there are steps that you can take in an effort to ensure that you can live a comfortable lifestyle after a California judge signs marriage dissolution papers.

Make a list of wants and needs

You may want to continue your tradition of taking a yearly vacation to Hawaii with your kids. However, it may be necessary to consider taking a trip to a nearby lake or to other locations that are more affordable to reach. It may also be necessary to move into a smaller home or rent an apartment to save money. Finally, you may want to consider cooking your own meals or buying clothes from discount retailers to ensure that you have enough cash to make ends meet.

Establish credit in your own name

A credit card in your own name ensures that you’ll have an emergency fund available if necessary. Establishing a positive track record of paying debts of any kind in a timely manner can make it easier to get a mortgage, car loan or personal loan in the future. If you already have a credit history that precedes your divorce, you should focus on regaining or retaining a high score and level of creditworthiness.

Ending a marriage may have short and long-term consequences for your credit score, bank account or retirement fund. However, a divorce settlement may include alimony or other financial resources that may help you weather the dissolution of your relationship.