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Divorce is difficult no matter the circumstances and financial adjustments are always required in a post divorce world! Whether you were the one that managed the finances in the marriage or not – a divorce results in changes in income and expenses and those adjustments are usually very difficult to make. But they are not impossible.

A few tips to help you get on track:

  1. Live within your means – if you didn’t do this during your marriage it is critical to start now. Living within you means saving between ten and fifteen percent of your income and living off the remaining income.
  2. If you have not managed your household finances prior to this consider taking a class on personal finance or contact a financial advisor as most will give you guidance at no cost.
  3. Develop a budget and a system to track your budget . Many people have gone back to the ‘envelope’ system – have an envelope for every expense so you don’t take money from the ‘mortgage’ envelope to pay for groceries – get that money from your ‘grocery’ envelope. Fill the envelopes every time you get paid

  4. If you need to draw money from your IRA, do this when the IRA is being transferred into your name from your spouse’s name because there is an IRS rule that allows funds to be withdrawn this one time without incurring the 10% penalty otherwise withdrawals are subject to income taxes and, if withdrawn prior to age 59 ½, may also be subject to a 10% federal penalty. (Ask your financial advisor about this opportunity.)

It is important to remember that managing the financial challenges that are a result of a divorce can be very empowering because you will be in sole control of your financial portfolio and future. By establishing financial independence as early as possible post divorce will help you manage the emotional aspects of divorce.

If you are overwhelmed with the challenges, consult a trusted financial advisor. A CERTIFIED FINANCIAL PLANNER™ can review your personal situation and may be able to help you determine the best strategy to achieve financial independence.  Contact CERTIFIED FINANCIAL PLANNER™ Debbie Craig with Craig Wealth Advisors for a no obligation, no complimentary consultation.


By Debbie Craig CFP®, MBA, CRPS®

Branch Manager



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