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How To Understand Your Past, Present & Future Finances After Your Divorce

September 15, 20221 min read

Feeling lost and overwhelmed when it comes to your finances post-divorce? Follow these steps to get a better understanding of your past and present financial status, so that you can set your future self up for success.

Start with your “why”: You can’t properly plan for the future if you don’t know what your goals are! The first step always has to be learning and understanding why this process is important to you, and what you want the outcome to be.

Track: Before you look to the future, you also need to understand where you currently are. For at least one month, write down all of your spending using your credit card statements, banking history, and receipts.

Forecast: Look at your year ahead and brainstorm all the potential expenses, both routine and special occasions. This should include events, home maintenance, vehicle expenses, memberships, etc.

Anticipate: Think about if you will have any additional needs as a result of your divorce, such as increased childcare costs, extra help around the home for things your former partner did, etc.

Flow: Now it’s time to practice your budget and make adjustments as needed on a monthly, quarterly, and annual basis. Make sure that your decisions are setting you up for success in the long term.

Next steps: To help you achieve your goals, consider hiring a financial team to guide you through this process. Remember to update your will, review all investments, and ensure your plan for retirement has been set. Keep in mind that when you hire a team, you must also manage the team. Don’t let them run everything! Make sure that you’re always asking questions and making informed decisions.

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