Wondering how you’ll be able to adjust to living on one income once your marriage has come to an end? We discuss some ideas for doing so, right here…
One of the biggest adjustments following a divorce will be adapting to a solo income. When you’re used to splitting bills with the house, food and childcare costs, it can be a daunting thought adapting to being a solo income household.
Of course, seeking professional advice from specialist family lawyers can go some way to easing the blow, as they can help you make agreements with your ex regarding your split finances. However, there are some other ways you can manage the financial changes. In this article, we’ll be exploring these ways, so take a look…
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Tips for Adjusting to a Solo Income After Divorce
Determine a New Budget
When you’re expecting your income to drop after finalising the divorce, it’s a good time to determine a new budget. Developing a budget based on your solo income will give you some clarity on your financial situation. It should be the basis of your new single life, as no one needs the stress of managing bills when you’re trying to move on peacefully.
You also need to ensure your expenses stay within your post-divorce income in order to not fall into debt. When determining a budget, it’s worth writing it down or putting in a spreadsheet, so you can see it all in front of you and nothing gets overlooked.
Starting with your income, consider all sources of income such as wages and any forms of benefits including child support. Listing all essential out goings, such as mortgage or rent, utility bills, food shops and car finances, will give you a number based on what is essential spending. Then, separately list non-essential spending, like a gym membership and extra food expenses such coffees. Anything non-essential can be reconsidered if you find the new budget does not allow for them.
If you’re not sure what is essential or non-essential, it could be worth asking a family member or friend to help you out and to challenge your list; some things may be unreasonable to others. You don’t have to agree with what friends or family say, but it’s worth considering when trying to cut down.
Don’t forget that, once you’re settled and you’re used to living on a solo income, you might find yourself with excess money. This can be used to regain some non-essential spends in your life later down the line.
Cut Expenses
Once you’ve established your new budget, it’s time to be hard on yourself and cut expenses. It’s not your fault you may have to cut certain things out – it’s just as a result of living alone. If the budget does not allow for it, then it needs to be cut.
Some ways you can cut expenses could include:
- Refinance your car loan (or sell it if you can do without a car)
- Selling your home to downsize
- Switch to cheaper supermarkets
- Price compare your insurance
A good practical way of eliminating or reducing expenses is to go through bank statements and highlight spends you feel were unnecessary or that you regret making. Those purchases are easy ones to cut from future spending.
Although it’s important to face your new solo financial situation, don’t be too critical around things that help you with your mental health. Going through a divorce can be emotionally draining, so don’t cut things that give you happiness or relieve stress entirely. They may seem unnecessary to some, but if it lightens the emotional load, it may be worth keeping.
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Increase Cash Flow
Increasing your cash flow may seem like an ‘easier said than done’ point to make, but it’s the best way to thrive financially after a divorce. There are many ways to increase your income; maybe it’s time to ask for a pay rise in work, or maybe it’s time to look for a new job entirely that is higher paid. Another option could be picking up a part time job as a side hustle.
There are many companies that offer flexible part time work that can fit with your new schedule. Some part time roles could include:
- Food delivery app
- Tutoring
- Babysitting
- Cleaning
- Selling items on Ebay/Depop
Manage Debt
Unfortunately, we all have some form of debt. One of the steps to take after a separation and adjusting to solo income is looking at the joint debt you have together and coming to a reasonable agreement to pay it off. Whether your accounts were to pay bills, or you have savings together, it must be separated equally.
Depending on your relationship with your ex-partner, this can be straight forward or difficult, but remember you’re both legally responsible to pay any joint debt. If you cannot come to an agreement on payments, this is something courts can address and sort so there is no room for anyone to wiggle out of paying debt.
If you’re worried about an ex-partner being difficult about the joint debt situation, it’s best to contact your bank and explain so that they can advise you and possibly freeze accounts so that no further debt can be racked up. Remember that your credit score is mostly linked to your ex-partner as you opened accounts together, so you don’t want any of their bad habits to linger over you and risk your chances of loaning money in the future. There is plenty of advice available online on paying off joint debt after a separation to get you started.
If you’re struggling with your debt, it is always best to speak to a professional about it. You will find there is a lot of help available, such as debt consolidation. This isn’t the same as hiring a debt settlement agency, which can end up costly and cause major damage to your credit score. Debt consolidation allows you to pay one lower monthly payment that covers all debt payments, sometimes with a lower interest rate than your current loans.
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Don’t Avoid Planning Out Your Finances After Your Divorce
Talking about your finances can be difficult, but it’s better not to bury your head in the sand when it comes to planning out how you’ll live with a solo income. In the UK, 42 percent of marriages end in divorce, so you’re not the only person who has experienced this hurdle.
If you’re struggling to do it alone, you may want to consider speaking to a financial professional to assist you in adjusting to your new financial life. A financial professional can work with you to develop a plan for any financial goals you may have, and help you achieve them more efficiently.
Please be advised that this article is for general informational purposes only and should not be used as a substitute for advice from a trained divorce or finance professional. Be sure to consult a financial professional if you’re seeking advice about adjusting to a solo income after your divorce. We are not liable for risks or issues associated with using or acting upon the information on this site.
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