How To Build Financial Stability After Divorce

Mar 28, 2018 | 2 years ago | Read Time: 2 minutes | By iKnowledge Team

A lot of people feel financially insecure in the aftermath of a divorce, but what’s important is to understand how to rebuild your financial stability.

Divorces can be both messy and time-consuming. Around 13.6 lakh people in India are divorced, according to the last census conducted in 2011! This is equivalent to 0.24% of the married population in the country. This number may seem small but the divorce rates have been increasing over the years. They have gone up from 5% in 1980 to 14% now.

And in the end, both parties can end up financially and emotionally drained. In this article, let’s find out the different ways you can build a steady financial future after a divorce.

  • Take stock of your financial situation

Divorce has the potential to upend your finances and lifestyle. You may have to shift to a new place of residence, your lifestyle may change significantly and you may have to sell valuable assets to meet your expenses. You may also need to get a steady source of income after divorce.

  • Household budget revisions

You don’t need to buy food from outside you can cook it yourself also you can buy groceries from supermarket to save your expenses. These are some of the savings you need to look into yourself. After a divorce, there can be a lot of expenses that can eat into your savings. That’s why it is important to revise your budget to ensure that you don’t overspend because of your old habits.

  • Regain Financial control

The changes in your life post a divorce don’t have to be permanent. They may be necessary until you regain control of your finances. By shedding the unwanted expenses, you can manage your financial situation. Do your research online and learn more about finances. You can start by exploring Aegon Life’s iKnowledge – a section dedicated to answer your insurance and investment needs.

  • Start investing if you haven’t done already

A secondary source of income can help in meeting all your financial needs and requirements. Investing your money can be a good way to supplement your income. Different investment options such as mutual funds, Unit Linked Investment Plans (ULIPs) and equities can be suitable for investments based on your risk tolerance and financial goals after a divorce.

  • Take charge of your retirement plan

Previously, you may have had a joint retirement plan with your spouse. But now, you need to create a new plan for yourself. This is to ensure that you are financially independent even in your retirement years. You can take advantage of pension plans to get a steady stream of income once the policy matures in your retirement.

  • Renaming the nominee in your life insurance

If you have a life insurance policy, it is quite probable that you may have mentioned your spouse as the beneficiary. You may want to consider changing your nominee after a divorce, especially if you have children. This is to ensure that your children are financially protected in case of an unexpected event.

To sum up

Remember to start small and expand on your goals slowly until you can achieve financial stability again. A divorce can impact your future financial goals, however with the right financial planning tools, you can regain control of your finances with ease.

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