So many women find themselves in financial turmoil upon divorcing. Many women also allow their husbands to be in control of the household finances. While there is nothing wrong with this, it leaves many women in a disempowered position.
In my own experience, after my own divorce, I remember barely being able to navigate my way around internet banking. I was in the fortunate position where I had run my own business for a few years before I divorced…..and I still found it difficult. Through my work in helping women deal with their divorces, I have realised that so many women are petrified of facing their finances…..for fear what they may find. The truth is that if you ignore your financial problems, they wont go away. It may be difficult and exceptionally anxiety-provoking, but the best way to face your finances is head-on.
A good place to start is to do a financial analysis. Ask yourself:
What assets do I have? List them.
What liabilities do I have? A liability means that you owe money for something. This includes credit card debt, loans, store car debt, car finance – any money that is owing.
What is my monthly income? If your ex is paying you a maintenance, you can list that as income too.
What is my monthly expenditure? Don’t forget to look at recurring monthly debit orders, bond repayments, loan repayments and your credit card statement. If you withdraw cash, it is useful to keep a small book where you write what you spend your money on.
This can be a scary exercise as so many women have no idea where they stand financially. Often, when we spend cash, we have no idea where it actually goes. That is why it so useful to keep a little notebook, so you can try curb unnecessary spending.
The first step to changing your financial situation is knowing where you stand. This is just the start.
The Divorce Source will be launching a series of financial education articles, so that you can be guided in taking financial control of your life.