A divorce is not just stressful, it can also be catastrophic for your finances, and many people struggle to figure out how to make their way back. In this article, we’re talking financial independence after divorce and sharing a roadmap to rebuilding your finances.

Family and divorce lawyers in the UK tend to see firsthand the devastation that a divorce or relationship split can cause. This is particularly so for women who, in the UK, will still often be left short-changed after the breakup.

In this article, we’re looking at financial independence after divorce and sharing a roadmap to rebuilding your finances.

How do people lose out in a divorce?

There are a few ways in which a person may be impacted negatively by divorce, and we’ll explore some of these here:

Home troubles

During a divorce, the marital home will tend to be sold or, if rented, the tenancy may be terminated. This will usually mean that one or both parties have to move out and find somewhere new to live. For a significant number of newly single people, the thought of having to meet mortgage or rent payments by themselves can be daunting.

Loss of lifestyle

Within a lot of marriages in 2023, traditional formats still apply whereby one party is the breadwinner and the other focuses on childcare. This can be devastating for the latter who, having let their skills lapse, may be unable to secure employment which will adequately match the lifestyle they have been used to.

Childcare costs

When a divorce occurs, one parent may find themselves in the uncomfortable position of having to find work – and to then juggle that with astronomical childcare costs.

Rebuilding your finances – and your independence – after divorce

While the prospect may be a daunting one, it’s never too early to start thinking about getting your life back on track following your divorce. In this section, we’re sharing tips on how you can do just that:

A fair settlement

Achieving a fair settlement from your divorce is vital for your day to day living and your financial future. Even if your divorce has been completed, you may be able to ask a solicitor to take a second look to ensure that the settlement you received is fair.

Similarly, you can look at your consent order. When you got divorced, you will probably have obtained a Divorce Consent Order which laid out who gets what, including childcare payments.

If your former spouse agrees, you may be able to change this to a Clean Break Consent Order whereby your ex will make a one off payment straight away in lieu of regular maintenance payments. This could help you to plan for your financial future by investing an amount of cash.

Work on your budget

During a marriage or relationship, we tend to form financial habits which fit that lifestyle, and it can be difficult to let go of some of these following a divorce. Take a good hard look at your spending and see where you can make savings. Although doing without that daily latte or manicure may be a wrench at first, remember that it’s not forever.

Make a plan

Have a (realistic) think about the kind of lifestyle that you would like and what sort of income would be necessary to achieve this. Next, make a plan for the next few years and include the steps that you are reasonably able to take to drive you toward your goals.

An example might be that you would like to achieve an income but, due to current responsibilities such as childcare, you may not be in a situation to take a full time job. In this instance, you may want to think about a job which will allow you to work from home or, if you have specific skills, you might consider becoming a freelancer.

While putting this plan in place, it’s also a good idea to familiarise yourself with any government benefits and schemes that you may be entitled to. For example, you may be eligible for accommodation within the government’s Housing Association Homes scheme. Alternatively, if you feel that going back into education may help you, you might be able to apply for the UK Parents’ Learning Allowance which offers financial assistance while you’re studying.

The light at the end of the tunnel

Following a divorce, it can be easy to feel that you’re trapped in a financial quagmire, relying on benefits and/or payments from your former spouse just to keep afloat. But, it’s important to remember that things won’t always be that way.

While it might not be easy, it is possible to change your situation and to improve your finances – and therefore your independence – over time. It is, however, important to take things slowly starting by, as laid out in this article, taking a good look at your budget and then making a plan which will help you to achieve your goals.

It’s also a good idea to connect with others in a similar situation through social media groups. There are also specialist sites, such as Gingerbread, who can offer a wealth of advice and resources, as well as a shoulder to cry on should you need it.

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 financial professional. Be sure to consult a financial professional if you’re seeking advice about your finances post-divorce. We are not liable for risks or issues associated with using or acting upon the information on this site.