Managing finances after divorce: 6 steps to find your financial footing

A divorce isn’t something anybody plans for. If you’re going through or recovering from one, you may feel like your whole life has been turned upside down. But that’s not how it has to be going forward. Take these important steps to steady your financial future and get your money matters right side up.

A full financial picture is critical to mapping out a clear path and minimizing surprises.

• Take stock of the value of your assets, like your home, car, and cash in the bank
• Count up your debts, such as credit cards and loans
• Add up your monthly income and monthly expenses, including debt payments, alimony, and child support

With a solid support system of useful resources, you’ll feel more in control over the state of your finances.

• A financial planner and investment advisor will help you define short- and long-term goals (e.g., emergency savings, college, and retirement) and clarify how you might achieve them
• An accountant can inform you about your changed tax status
• Your attorney can guide you on issues like settlements and estate planning

Considering all factors from your financial audit, these should be your key financial strategy points:

• Your monthly budget, making necessary adjustments so your expenses are less than your income
• Your debt payoff plan, prioritizing payments in a realistic way that sets you up for success (credit counseling may be a great route to help you get a better handle on tackling debt)
• A savings plan, including growing an emergency fund as a safety net

To move forward with a clean slate, ensure accounts and documents are updated and in order.

• Close joint accounts for savings, checking, credit cards, and insurance (pull your credit report to confirm all joint accounts are closed)
• Open new individual accounts
• Determine ownership of loans, like mortgage and auto, and potentially remove yourself to avoid negatively impacting your credit score
• If you change your name, notify the Social Security Administration and update all of your individual accounts
• Amend your beneficiaries on your retirement accounts, life insurance policies, will, and/or estate plan

When you shift from having two incomes to one, decide where you can cut back on expenses.

• Look into downsizing your home or car, or refinancing your mortgage or auto loan
• Make an effort to streamline grocery purchases and eat in more often
• Discuss with the utility companies how to lower your bills (e.g., by cutting plans or getting a better deal)
• Scale back on subscription services and entertainment

Tap into opportunities to make extra money and help you regain your financial footing faster.

• Negotiate a raise or bonus at your current job
• Get a side hustle going
• Look for a better-paying job

This major life change and its impact on your finances may seem overwhelming. But with the right support and plan in place, it’s possible to manage your finances after divorce to build your new normal. And you don’t have to do it alone. 

We’re committed to being your banking partner throughout the many transitions and milestones in life. If you have any questions or need assistance, contact your local branch or our Customer Care Center at 1-866- 764-8638.