Definition

Steps to rebuild your finances after a divorce, focusing on budgeting, saving, and reestablishing credit.

What to consider

  • Rebuild your finances by reassessing your new budget.
  • Consider professional advice to navigate changes in income and expenses.
  • Take time to adjust and set new financial goals.

Real world scenarios

  • Following her divorce, Amy revises her budget to reflect a single-income household. She cuts back on dining out and gym memberships for a few months to stabilize finances.
  • Jon hires a financial planner for guidance on dividing retirement accounts, ensuring both parties get fair shares without excessive penalties.
  • Rebuilding her credit after divorce, Sandra applies for a secured card and keeps spending low, gradually restoring her financial confidence.

Related terms

Legal & Estate Planning