12 essential financial strategies for rebuilding after divorce

DIVORCE can be emotionally draining and financially destabilising, and the road to recovery starts with taking back control of your finances. Whether you're rebuilding from scratch or recalibrating your financial plan, these 12 practical strategies can help you move forward with confidence.

- ALEX ODENDAAL

1. Take ownership of your accounts: Separating all financial ties from your former spouse involves setting up accounts in your own name, redirecting all income and debit orders, and closing any joint accounts that are no longer needed. Ideally, simplify your portfolio by consolidating your accounts and limiting the number of credit cards you use going forward.

2. Draft a budget that reflects your new reality: Moving from a dual-income household to a single-income home requires a fresh approach to budgeting. Focus on creating a flexible budget that reflects your new expenses with room to manipulate as you navigate your changed circumstances.

3. Avoid rushed financial decisions: While it may be tempting to make big decisions in the wake of divorce, our advice is to exercise patience. Acting too quickly while your financial position is uncertain and emotions are running high can have far-reaching tax and legal implications. Instead, delay major financial decisions until the division of assets has been finalised and emotions have tempered.