Divorce can be an overwhelming experience, especially for stay-at-home moms. Here are ways to regain your financial footing.
Think about the meaning of “plan.” Divorce resembles a long road trip. You can outline your route, but you’ll encounter detours, delays, and surprises. This unpredictability is especially true for stay-at-home moms who must adapt and redefine their lives after the divorce.
“You may feel like your agreement with your husband ensured he’d work while you raised the kids, but now that foundation has shifted,” says a financial expert. “This is a deeply emotional time.”
To move forward financially, assess your income and expenses to shape your new reality and make necessary adjustments. Here are some steps to consider:
Evaluate Your Housing Situation
While it may feel essential to keep the family home during the divorce, it's vital to analyze the true costs of maintaining it now that you're solely accountable.
Carefully calculate how downsizing to a less expensive home could affect your finances. Examine mortgage payments, taxes, insurance, and all related monthly expenses such as utilities and maintenance.
Understand that letting go of the house sooner might be wise: “If you can’t afford the home, it will strain your budget in other areas,” advises a financial planning CEO.
Improve Your Credit Score
Many recently divorced women discover their credit scores are lower than anticipated, often due to poor financial management as a couple or a lack of individual credit history.
Regardless of the reason, now is the time to enhance your credit score. A low score can hinder renting apartments or affect job prospects, while a strong score opens doors to better loan rates. Start by making small purchases on a credit card and paying them off promptly. Set up automatic payments for recurring bills to avoid late fees. If you struggle to get a card, consider applying for a secured credit card as soon as possible.
Reenter the Job Market
Even with child support or alimony, you may still want or need to generate your own income. The sooner you transition from a stay-at-home mom to earning your own money, the quicker you'll gain financial independence and confidence.
Reach out to friends and former colleagues to network and share your job interests.
If you're not ready for a full-time position, consider short-term or part-time work.
“There are many options now to work part-time and create some income while you search for the right full-time opportunity,” notes a financial director. “Many people find ways to manage week by week until they discover their next career path.”
If you need to update your skills, think about taking online courses to enhance your resume.
Prepare for Unexpected Situations
Since you’re now solely responsible for your household’s finances, ensure you’re ready for the unexpected. Start building an emergency fund with three to six months’ worth of expenses (a high-yield savings account can help), so that unforeseen costs like medical bills or repairs won’t derail your finances. If saving three to six months isn’t feasible right now, begin with small monthly contributions—the growth will surprise you.
Consider disability insurance to safeguard your income in case of illness or injury. Also, ensure you have sufficient life insurance to support your children through college and into adulthood.
Revise Your Estate Plan
Review your end-of-life documents to identify necessary changes. You may want to remove your ex-spouse as a beneficiary and appoint a new health care proxy and power of attorney. “Creating a new will is essential if your ex-spouse was named in your previous one,” advises a certified financial planner. “This ensures your assets go to your desired beneficiaries.”
We’re Here to Support You
As a stay-at-home mom navigating divorce, you’re experiencing a significant life shift. While it’s a lot to manage, remember that you’re capable! We’re here for you as you navigate this journey.
