A New Jersey divorce has significant financial implications. However, there are strategies you can employ to minimize the impact it has on your standard of living.
Taking proactive steps helps you navigate this difficult transition while increasing your chances of achieving financial stability.
Create a budget
Establishing a clear budget helps minimize the financial impact of a divorce. Take into account your income, expenses and any financial obligations resulting from the divorce settlement. Creating a realistic budget and adhering to it helps you maintain control over your finances and live within your means.
Explore housing options
Housing expenses may make up a significant portion of your budget. Assess your housing situation and determine if it aligns with your post-divorce financial situation. You may need to downsize, find a more affordable living arrangement or explore co-housing options with family or friends to reduce housing costs.
Evaluate and adjust your lifestyle
Take a close look at your current lifestyle and identify areas where you can make cost-saving adjustments. This might include cutting back on non-essential expenses such as entertainment or subscription services. By making thoughtful choices, you can maintain a reasonable standard of living without overspending.
Save for emergencies
Having a financial safety net in the form of an emergency fund is important both during and after a divorce. If you had to deplete your emergency fund during the divorce process, prioritize building it back up as soon as possible. This fund can provide much-needed financial security if you face unexpected expenses or emergencies.
Seek informed guidance
A financial advisor or planner may be able to help you make informed decisions about your finances. These professionals provide guidance on budgeting, investing and long-term financial planning, which can be instrumental in maintaining your standard of living after a divorce.
Per Barrons, most people see their standards of living fall after a divorce. The average American woman sees her standard of living fall by 45%, while the average man sees his fall by 21%.