7 Money Management Tips for Newer Divorcees in Canada

Home Financial 7 Money Management Tips for Newer Divorcees in Canada

Money management is an important skill for everyone to learn, but it is especially important for those who are going through a divorce. Divorce can be a very taxing period, so it is important to be as prepared as possible. There are a few steps to keep in mind when it comes to money and divorce. Here are some money management tips to recall and put into practice:

1) Know the Differences in Finances

It is key to know the difference between your finances when you’re single and your finances when you’re married. This can be tricky, especially if you have been with your spouse for a long time. Make sure that you know what assets and debts you have, as well as what your income and expenses are by yourself. Connect with a professional for assistance and further insight.

2) Start Building Your Own Credit

Divorcees should start building their credit as soon as possible. This is vital, especially if you have been married for a long time and have not established credit under your own name. Credit will be helpful later on when you’re ready to purchase a home or a car on your own. You can start by getting a credit card in your name and using it responsibly.

3) Mark New Financial Goals

Divorce can be a very difficult time. It’s quite important to have a plan in place to get your life back on track. You need to have realistic financial goals to help you stay on track. It’s also recommended to have an emergency fund in place to help you through tough times, as you will have to rely on your own accounts from now on.

4) Budget Your Finances Wisely

In addition to being a tough process, divorce can be an expensive process, so it’s important to budget your finances wisely. Try to be mindful of your spending and make sure you’re not overspending on unnecessary items. It’s also quite ideal to be aware of your income and make sure you’re not spending more than you can afford.

5) Update Insurance Information

Separation can impact your insurance coverage. If you’re covered under your spouse’s insurance, you’ll need to update your information. Divorcees are also recommended to update their beneficiary information on their life insurance policies. Make sure you’re aware of your coverage and make any necessary changes.

6) Redo the Terms of Your Will

If you have a will, you’ll need to update the terms stated within it after a divorce. Most divorcees will have to remove their ex-spouse from their will and designate new beneficiaries instead. Make sure you update your will and confirm any necessary changes as soon as possible after your divorce is finalized.

7) Consult a Divorce Financial Planner

As implied by the points above, divorce can have a major financial impact on your life. Working with a divorce financial planner can help you to understand your financial situation and plan ahead. They can offer you advice on how to manage your finances, plan for the future, and protect your assets.

Conclusion

A divorce can be a confusing stage. It’s important to be prepared for the financial impact that it can have on your life. With these tips, you can make sure you’re prepared for the financial challenges that lie ahead. Looking for a divorce financial planner in Calgary? Alberta Divorce Finances helps you understand and handle your finances when you’re newly divorced. Contact us today!