The Divorce Planner's Alex Beattie had an incredibly detailed and insightful conversation with certified financial educator and money coach Eboney Byrne about divorce financial planning and recovery.
Their conversation below is packed with tips that will help you easily navigate early divorce financial planning, highlights things you should be taking into consideration during divorce negotiations, and provides you with several ways to help you recover financially after a divorce.
Here's a snapshot of what was discussed:
Knowing Your Financial Realities Now
Eboney stressed the importance of understanding your financial situation right from the earliest stages of considering a divorce. She encouraged individuals to calculate how much it costs to live their lives—an often under-estimated figure. After all, it's much easier to plan for your financial future when you have a solid understanding of your expenses.
The Power of Information
Information is power, as Eboney rightly pointed out. After identifying your life expenses, you can then start planning your next steps during separation or post-divorce. Some people are overwhelmed by financial calculations, thinking them complicated or scary. Don't bury your head in the sand! The Divorce Planner's got you covered with a variety of easy-to-use digital tools to help with budgeting and financial planning.
Avoiding the Biggest Money Mistake
Eboney revealed that the biggest money mistake that many people make during the divorce process is creating a budget based on support they expect from their ex. She emphasized that your financial plan should primarily be based on your own income, with any additional income acting as a bonus.
Getting Back on Your Feet divorce financial planning
Both Eboney and Alex talked about the importance of preparing to re-enter the workforce if you've been a stay at home parent. The key is to ensure you can cover your costs on your own. Utilizing your skill set and networking with previous colleagues or friends can help you find opportunities.
Hidden Costs and Planning For Them
Remember to keep hidden costs in mind when planning your expenses. These include health insurance, child care, home maintenance fees, any statutory fees, and even the cost to maintain your lifestyle.