Going through a divorce is difficult.
Not only does it impact you emotionally, but it also impacts you financially.
And those financial impacts you’ll feel now AND in the future.
Unfortunately, some people make decisions during a divorce based on emotion rather than the financial impact.
For example, some hold onto a house without considering whether they can afford ongoing maintenance, taxes, and insurance.
Others may forgo retirement assets in order to keep their house.
After your divorce is finalized, any changes require returning to court and incurring additional attorney fees.
If you don’t have enough money to support your post-divorce lifestyle, you have two options:
- generate more income
- reduce your spending
By doing both, you’ll put yourself in a stronger financial situation.
To generate more income, here are three strategies.
1- Stay in current role but ask for more money
If you enjoy your current job, find out when your manager will develop their upcoming budget.
You want to ask your manager for a salary increase before they submit their final budget.
Make sure you document your accomplishments and know your value in the industry.
2- Find new job with higher pay
If you need to find a higher-paying job, explore opportunities with your current employer first.
You’ve already developed your relationships and brand.
It may be easier to stay with the company culture you know rather than learn a new one.
If no opportunities exist at your current employer, then create a job search plan.
Be prepared to spend at least three hours daily finding a new job.
3- Find a side-hustle
Yes, it cuts into your social life or downtime, but it generates additional income.
Use your creativity and contacts.
If you have friends who own a small business, ask whether they need someone to cover while their staff is on vacation.
If you have friends with pets, ask if you can pet-sit while they’re away.
Since 2020, many retail and grocery stores need in-store shoppers to fulfill online purchases. Be open to these opportunities.
Also, many employers may need virtual administrative help.
Facing financial reality after divorce can be an eye-opening experience.
Don’t berate yourself if your decisions have put you in a stressful financial situation.
Instead, focus on job opportunities to increase your income.
Concurrently, be diligent about reducing your spending.
Reach out to us for our Post Divorce Transition guidance.
Remember to stay PEF (positive, enthusiastic, and focused), and make 2026 your best year ever!
(Update to original post from September 6, 2023)
ABOUT THE AUTHOR:
Niv Persaud, CFP®, CDFA®, RICP®, is a Managing Director at Transition Planning & Guidance, LLC. Life is more than money. It’s about living the lifestyle you want and can afford. For that reason, Niv consults with clients on money, life, and work. Her approach capitalizes on techniques she learned throughout her career, including as a management consultant, executive recruiter, and financial advisor. Her services include developing comprehensive financial plans, divorce financial reviews, and retirement plans. Niv actively gives back to her community through her volunteer efforts. She believes in living life to the fullest by cherishing friendships, enjoying the beauty of nature and laughing often — even at herself. Her favorite quote is by Erma Bombeck, “When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left and could say ‘I used everything you gave me.’”