It is only natural to be anxious about life after divorce. You might be worried about how you will afford to stay in the family home, or pay for childcare, food or the bills. Divorce adversely impacts all couples regardless of income and wealth, but there are things you can do to reduce the financial effects both during and after a divorce. This article looks at a range of solutions.
It is only natural to be anxious about life after divorce. You might be worried about how you will afford to stay in the family home, or pay for childcare, food or the bills. Divorce adversely impacts all couples regardless of income and wealth, but there are things you can do to reduce the financial effects both during and after a divorce. This article looks at a range of solutions.
If you have a family law issue and you require legal advice to understand your options, contact specialist family law solicitor Liza Gatrell. Vicki is a trusted and highly capable family lawyer and divorce solicitor and a Partner at the specialist family law firm, Stowe Family Law.
Is it easier to stay in an unhappy marriage?
Although money is often the reason many marriages break down, it is also the reason couples stay together because they feel they can’t afford to divorce. If you are the financially weaker party, it can be difficult to think rationally about what might be expected of you during and after the divorce. You may be entitled to spousal maintenance or a lump sum payment as part of a clean break settlement, which advice from a solicitor could help you explore. There are also many organisations and people who can help if you are feeling anxious about money.
How do I get back on my feet after divorce?
The law in the UK means that financial settlements have a starting position of a 50:50 split with the court looking at all the factors, including housing, children, pensions, and future income potential.
The first step is to start working out your budget. As you are adjusting to living on your own and paying off any debt you’ve accrued as a result of your divorce, you might have to scale back on some expenses. So creating a budget will help give you a clear picture of your current financial situation and guide your saving and spending habits.
Here are our tips:
Get financial advice
Regaining your financial footing after a divorce is unlikely to be achieved straightaway, but obtaining financial advice during the process may get help you hit the ground running. Whilst it will not be possible for a financial advisor to say how long it will take to recover financially from a divorce, if you set yourself a goal, they can create a plan to help you achieve it.
It may be tempting to use a lump sum divorce settlement for designer luxuries or an expensive holiday, but working with an advisor could help you put cash that is not needed in the short term to work in the longer term. No matter how small the amount, you should ensure your cash is held as tax efficiently as possible and that you are using the available tax allowances.
Ensure matrimonial assets have been agreed properly
If possible, the family court will try to achieve a clean break between the parties. The advantage of this is that any future earnings can be protected from any future claims by a former spouse. Provided you have agreed the division of assets, and this has been encapsulated within a court order, then it is unlikely, except in very limited circumstances, to revisit a divorce settlement in the future. Even if one party comes into wealth following the settlement.
A capital or pension split can never be revisited, but if there are spousal maintenance payments, these are always capable of review and can be varied upwards or downwards depending on the individual circumstances.
Returning to work
Many stay at home parents will find it hard to return to work after a period away from the workplace, but this is one of the simplest ways to ease financial burdens. Although divorce settlements seek to even out inequalities between a divorcing couple, your earning potential is going to be a strong indicator of the amount of wealth you will be able to build as a single person.
Childcare can be expensive, so don’t hesitate to ask for support from family and friends – at least in the interim, whilst you get something more permanent sorted out. You should recognise that you will need some sort of support system as you navigate your new circumstances, reach out to your children’s school – they may provide a breakfast or after school club, that extends the time period for drop-offs and pick-ups. There may also be other local organisations and programmes that can offer assistance to single parents with limited financial means. Consider joining support groups or seeking advice from others who have gone through similar situations.
Side hustles and learning new skills
If your income is insufficient to cover your expenses, consider exploring opportunities for additional income. Look for ways to leverage your skills and interests to generate extra income, be proactive in searching for opportunities that align with these. If you have a hobby or skill, consider turning it into a freelance business or side hustle. This could be anything from writing, graphic design, tutoring, consulting, crafting, or even dog walking. Not only can this bring in additional income, but it also allows you to work on your own terms and in a way that fits in with your family.
One of the most effective ways to earn money is by learning new skills. Here are our tips for finding opportunities with limited financial resources:
- Make a list of potential skills you would like to develop such as cooking or baking, home repair, or garden maintenance, for example
- Research free or low cost learning opportunities. There are numerous online platforms that offer free or affordable courses, check local community centres or organisations offering workshops or classes at a reduced cost.
- Use online tutorials and resources such as blogs and YouTube videos to gain knowledge and practical experience.
Buying a new home
Housing is one of the biggest expenses you are likely to encounter following divorce. When you were in a couple, you could probably purchase a larger home, especially if you had two incomes. Now that you are single, it will be difficult to maintain a similar property when you have to survive on one salary. Try to be realistic and purchase something more affordable. By downsizing to a smaller, more affordable home, you can free up some of your income for other expenses or savings. Downsizing can also provide you with a lump sum of money if you are able to sell your former matrimonial home at a higher price.
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The information on this website is to be considered a guide and is therefore not legal advice. You use this information with the understanding that Wiselaw does not accept liability for any direct or indirect losses as a result of anyone relying on or acting upon the information on this website. Whilst we endeavour to provide accurate information, Wiselaw does not accept liability for any errors or omissions on this website.
