Divorce can be financially overwhelming, especially for women who may have relied on their ex-partner for managing the finances in the past. It's common to feel overwhelmed, anxious, and scared about managing money, investing, creating a budget, and making wrong financial decisions. The fear of not having enough to live on after a divorce or making the wrong decisions is understandable. However, if you're going through a divorce, it's important to overcome this fear and take control of your finances. If you are a divorced woman, you don't have to be paralyzed by these fears. In fact, this could be an excellent opportunity to take control of your finances and build a better future. In this post, we will discuss common financial fears of women who have gone through a divorce and how to overcome them. See our Blog:
Fear 1: How to pay for the cost of divorce
Divorce is expensive, and legal fees can pile up quickly. The first step is to make a budget for the divorce expenses, such as lawyer fees, court filing fees, and mediation. Next, explore your payment options, such as personal savings, loans, or credit cards. Weigh the pros and cons of each option and consult a Certified Divorce Financial Analyst (CDFA) to help you choose the best payment option for you.
Fear 2: Fear of managing money and making wrong financial decisions/ Fear of now being in charge of money decisions.
New financial responsibilities can be scary, but you don't need to go it alone. Learn about personal finance basics, such as budgeting, saving, and investing. Consider working with a CDFA who can support you in creating a financial plan that aligns with your goals and values. Additionally, be patient with yourself and don't be too hard on yourself if you make a mistake. See our Blogs:
Fear 3: Fear of investing and creating a budget
Investing and budgeting are vital components of financial health. Start by educating yourself on investment options and spending plans that suit your lifestyle. Next, track your expenses to identify where you can save money. Sophie, the Divorce Sherpa can guide you to create three budgets: Dream Budget, Necessary Budget, Bare Budget. This can help you create a realistic budget that aligns with your goals and values. If you need help, consider working with a financial Analyst or a coach to create a budget that works for you. See our Blog:
Fear 4: Fear of what to do with the divorce settlement
Receiving a significant divorce settlement can feel overwhelming. It's essential to create a plan on how you want to use the money. Consider creating an emergency fund, paying off debts, investing in your retirement, or buying a home. Another thing that women may fear about the Divorce Settlement is the QDRO (Qualified Domestic Relations Order) and IRA (Individual Retirement Account). These are legal matters that can be confusing, and it’s natural to feel overwhelmed. But ignoring them won’t make them disappear. Doing some research and understanding your options can help alleviate these worries. Additionally, think about seeking advice from a CDFA to figure out the best use of the funds. You may also want to hire a lawyer to help you navigate these murky waters. See our blogs:
Fear 5: Fear of Not Being Able to Protect the Children
Divorce can be a stressful experience for the children. It can be hard to stay focused on what’s best for them when emotions are running high. Taking time to assess their needs and desires is important in protecting your children’s interests and emotions during and after the divorce proceedings. You may work on a parenting plan with your ex-partner about custody arrangements, division of assets, and any other important matters. If possible, enlist the help of a trained divorce coach to ensure you remain focused on what’s best for the children. Finally, be sure to have an open dialogue with your children throughout the process so that they feel safe and secure in their decisions. See our blogs on Children and Divorce:
Freedom from Fear
Taking control of your finances can feel like a daunting task, but it's empowering. Money nightmares are another common fear many women have when it comes to divorce. This fear can be especially intense if you were previously dependent on your partner’s income, but it’s important to address these worries head-on. Create a budget and savings plan to help give yourself peace of mind. Track your expenses, review your bills, pay them on time, and monitor your credit score. Look for ways to save money where you can. Consider opening your credit cards, bank accounts, and setting up your investment account if you do not have them already to get comfortable with the process.
Don't let the financial fears take over. With patience, resources, and support from a Certified Divorce Financial Analyst, you can overcome financial fear and take control of your finances. Creating a budget and investing, making a plan for your settlement, working on your credit score, and seeking help where necessary are the first steps toward financial freedom. See our Blogs:
If you need help figuring out your divorce possible outcomes and working on how it can be a good thing for you to contact us
Are you getting closer to your settlement or having post divorce questions? Contact us at and check out www.financial-sherpa.com