This post may contain affiliate links which means that if you click through to a product or service and then buy it, I receive a small commission. There is no additional charge to you.

This is a collaborative post. 

Financial difficulties often come with divorce or separation. So it’s essential to be prepared, especially if you have children. If you are suddenly single, you may need to make changes in your spending habits and manage your finances. Here are some tips on better preparing yourself financially for this transition.

Reduce your expenses

The first thing you may want to do is reduce your expenses. You’ll need to set some money aside for yourself and your children, so you will want to cut back on some of the things you were spending money on. One good idea is to decrease the amount of time you spend in places that cost a lot, like restaurants, movie theatres, and bars. You can also take care of small tasks around the house yourself, like mowing the lawn instead of hiring someone.

Separate finances

It is essential to start separating your finances as soon as possible. Contact all of the companies you hold joint accounts with and explain the situation. If you have two cards for one credit card, it is best to revoke these privileges to avoid any more debt being racked up in the other party’s name. Open new accounts where possible and direct your personal income or half of a joint income to this account so you can avoid being left destitute in the event of a joint account being drained.

Get advice from professionals.

If you are dealing with a separation or divorce, it is good to speak with a financial advisor. These professionals can help you make informed decisions about your finances and provide perspectives that you may not have considered for yourself. They can also help you determine if there are any legal implications of your situation that could affect how you manage your money. Consult family law solicitors for the best advice regarding your children, child support payments and where you stand legally.

Monitor your credit report

Now is a good time to monitor your credit report for errors or fraud. You can do this by getting a free copy of your report from all three bureaus once per year.

It’s also important to note any accounts you share with your spouse. This could include joint business, investment and checking accounts, as well as credit cards that the two of you shared. These may need to be updated or closed.

Lastly, make sure you have an emergency fund saved up if something unexpected comes up during this transition.

Conduct a cash flow analysis

The first thing you should do is conduct a cash flow analysis to determine your current financial position. This will help you prepare for the future.

You need to know where you stand financially with your income and expenses, as well as how much money you owe and how much money you can afford to spend. You may be able to make adjustments so that your budget remains balanced despite your new circumstances.

The earlier you start prepping for life post-divorce or separation, the easier it will be on you financially to move ahead with your life.