Divorce is emotionally exhausting, and trying to work out the finances in the midst of emotional and logistical turmoil is too overwhelming. With proper planning and attention, though, you will be able to work through this transition and rebuild your financial stability. Learning how to approach your finances in a manner that will enable you to move forward in a healthy, financially secure manner is critical.

Paint the Clearest Picture Possible of Your Current Finances

The first thing to undertake when handling finances both during and after a divorce is to paint as realistic a picture of your current financial situation as possible. You’ll need to round up all the financial records: bank statements, investment records, tax returns, and any debt-mortgages or credit card balances. This gives you the whole picture of assets versus liabilities. Knowing your financial standing will enable you to make good choices and ensure that you are never caught off guard later on. This full picture is necessary in order to understand what post-divorce you will be able to afford and plan accordingly.

Separate Your Accounts and Financial Responsibilities

Now that the financial information has been compiled, it’s time to start separating the financial responsibilities from your spouse. Set up a bank account in your name only and alter any direct debits or standing orders, including your salary. If the credit cards were joint, the division of the balances will have to be sorted out and each party must become responsible for his or her share. If there are loans that were joint, it’s necessary to sort out who will be responsible for them going forward. You may have to consult a financial adviser or divorce lawyer to iron out complicated situations regarding assets or shared responsibilities. Keeping your finances separate will save you from future complications.

Know How Divorce Affects Your Tax Situation

Divorce will impact your tax situation in many important ways, and understanding these changes is crucial for effective financial planning. You will usually need to file as a different status, for example, from married filing jointly to single or head of household. Your tax deductions may be different depending upon who gets the assets and who pays alimony or child support. You could then consult a professional tax advisor who can advise you on how the new financial situation will affect your taxes and prepare you for any tax liability. This keeps you from getting surprised at tax time and could even give some insight into what the future will bring financially.

Plan for Long-Term Financial Security

When you divorce, you immediately get caught up so quickly in what your immediate needs are that it’s easy to forget about financial long-term care. You will want to begin first by reviewing retirement plans and other savings over the long term. Divorce will substantially change your financial situation in the future. Shared retirement accounts, such as a 401(k) or pension, will be divided based upon how the decision is made about such assets. Your attorney or financial advisor will better be able to help you through the process of having those accounts divided fairly. Consider also how your career or income may be affected because of your divorce, and readjust the long-term financial goals. Rebuilding one’s financial future may take some time, but it is definitely possible with a well-considered strategy that will bring you back on your feet to face new life with renewed stability.

Reassess Your Budget and Expenses

Once the divorce is finalized, you’ll need to reassess your budget and living expenses. It is a huge adjustment to live on one income if you are accustomed to living off of two incomes. Next, consider core expenses like housing, utilities, insurance, and how well your new income will support you. You may need to make temporary or permanent changes in spending in order to ensure that you live within your means. It is overwhelming, but it’s at the same time quite liberating-opportune-for a break and to learn to manage money. Once you come up with a realistic budget that you actually use, you’ll be back in control.

Seek Professional Guidance

Divorce generally includes some knotty financial decisions; expert opinion, therefore, will help to make such tender decisions smooth and easy. A financial adviser or certified divorce financial analyst is another expert who can help a person understand his options, especially those dealing with asset division. Therefore, early consultation with an attorney will shed light on how state law has divided financial assets where necessary and can protect that right in every sense of the word from start to finish of the case. You make decisions based on your knowledge of the rights while averting money-wasting decisions.

Handling your finances during and after divorce requires a great deal of organization, planning, and sometimes professional help. Taking the time to understand where you are, making changes, and planning toward your future will go a long way in achieving financial security and independence as you move forward. Divorce is difficult, but with a well-thought-out approach to finances, you can make it through this transition and start over.