Embracing a Fresh Start: Your Path to Financial Independence after Divorce

Embracing a Fresh Start

By Attorney Michelle Perkins

Divorce marks the beginning of a new chapter in life, one that comes with its own set of challenges and opportunities. As you navigate the emotional aspects of separation, it’s essential to also focus on your financial well-being. Achieving financial independence after divorce may seem like a daunting task, but with determination and a solid plan, you can pave the way for a prosperous future. In this article, our Scottsdale Divorce Lawyer will explore practical steps and strategies to help you regain control of your finances and embrace a fresh start.

Assessing Your Financial Landscape

Assessing Your Financial Landscape

Embarking on the journey towards financial independence requires a clear understanding of your current financial situation. Take a comprehensive inventory of your assets, debts, income, and expenses. This assessment will serve as a foundation for your financial roadmap, enabling you to make informed decisions about budgeting, savings, and investments.

Setting SMART Goals

Now is the perfect time to define your financial goals, both short-term and long-term. Make them Specific, Measurable, Achievable, Relevant, and Time-bound (SMART). Whether it’s paying off debt, building an emergency fund, or saving for retirement, setting clear goals will help you stay focused and motivated throughout the process.

Establishing a Path to Financial Success

SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound, and these criteria ensure that your goals are well-defined, attainable, and provide a clear roadmap for success. Let’s dive deeper into each aspect of SMART goal setting:

  • Specific: Your financial goals should be specific and well-defined. Instead of a vague goal like “saving money,” specify the exact amount you want to save and for what purpose. For example, you might set a goal to save £5,000 over the next year to establish an emergency fund. By clearly defining the objective, you’ll have a tangible target to work towards.
  • Measurable: Make your goals measurable so that you can track your progress and celebrate milestones along the way. Assigning specific metrics or numbers to your goals allows you to monitor your advancement and stay motivated. For instance, if your goal is to pay off debt, identify the amount you want to eliminate and track your progress by measuring the reduction in debt over time.
  • Achievable: Ensure that your goals are realistic and attainable. While it’s essential to aim high, setting unattainable goals can lead to frustration and discouragement. Consider your current financial situation, available resources, and time frame when setting goals. It’s perfectly acceptable to challenge yourself, but keep your goals within reach to maintain motivation and confidence in your abilities.
  • Relevant: Align your financial goals with your overall life objectives and priorities. Your goals should be relevant to your unique circumstances, values, and long-term vision. Reflect on what matters most to you and how achieving these financial goals will contribute to your overall well-being and personal growth.
  • Time-bound: Assign a specific timeline to your goals to create a sense of urgency and accountability. Without a deadline, goals can become vague aspirations that lack direction. Break down your long-term goals into smaller, manageable milestones with specific timeframes. For example, if your long-term goal is to save £50,000 for retirement in ten years, set intermediate targets, such as saving £500 per month.

By setting goals, you provide yourself with a roadmap for financial success. These goals provide clarity, enable effective monitoring, and foster a sense of achievement as you make progress. Remember to periodically review and adjust your goals as circumstances change, celebrating milestones along the way and staying motivated to reach the finish line.

Crafting a Financial Blueprint

Developing a well-crafted financial plan is key to achieving your goals. Start by creating a realistic budget that reflects your post-divorce income and expenses. Look for areas where you can reduce unnecessary spending and redirect those funds towards your financial objectives. Don’t forget to include a savings component to establish an emergency fund that can cushion unexpected financial setbacks.

Empowering Yourself through Financial Education

Enhancing your financial literacy is a powerful tool for taking control of your financial future. Educate yourself on personal finance topics, such as budgeting, investing, and managing debt. Numerous online resources, books, and courses are available to help you build the knowledge and confidence needed to make sound financial decisions.

Managing Debt Wisely

Divorce often comes with financial obligations that need to be addressed. Evaluate your existing debts and develop a strategy for managing and paying them off. Prioritize high-interest debts while making consistent, timely payments on others. Debt consolidation or refinancing options may also help streamline your repayment process and potentially reduce interest rates.

Building Your Financial Support Network

Don’t hesitate to seek professional guidance from financial advisors or planners who specialize in divorce-related matters. They can offer valuable insights, help you navigate complex financial decisions, and provide objective advice tailored to your unique circumstances. Additionally, consider joining support groups or online communities where you can connect with others going through similar experiences and gain emotional and financial support.

Investing in Your Future

As you regain control of your finances, explore opportunities to invest in your future. Assess your risk tolerance, research investment options, and consider diversifying your portfolio to balance potential returns and risks. Consult with a financial advisor who can help align your investment strategy with your long-term financial goals.

Practicing Self-Care and Resilience

Taking care of your emotional well-being is just as crucial as managing your finances. Practice self-care, surround yourself with a supportive network of family and friends, and engage in activities that bring you joy and peace. Building resilience during this transition period will empower you to stay focused on your financial goals and overcome any obstacles that may arise.

Why We Must Discuss Finances After a Divorce

After a divorce, it’s essential to have open and honest conversations about finances. While it may not be the most comfortable topic to discuss, addressing financial matters is crucial for several reasons.

Here’s why it’s essential to have financial conversations post-divorce:

  • Clarity and Transparency: Discussing finances allows both parties to gain clarity and transparency regarding their current financial situation. It provides an opportunity to assess assets, debts, and ongoing financial obligations. By openly discussing these matters, it becomes easier to establish a clear picture of individual financial responsibilities and work towards a fair and equitable division of assets.
  • Protecting Your Financial Future: Talking about finances after a divorce is crucial for protecting your financial future, and seeking the assistance of a divorce mediator or engaging in divorce mediation can greatly facilitate this process. It allows you to address any outstanding joint accounts, debts, or financial entanglements that need to be resolved. By closing joint accounts and separating financial obligations, you can protect yourself from potential financial liabilities or complications that may arise down the line.
  • Budgeting and Financial Planning: Post-divorce financial discussions enable individuals to establish new budgets and financial plans tailored to their changed circumstances. Creating a budget helps in managing expenses, setting financial goals, and ensuring that you can maintain financial stability moving forward. By openly discussing your financial needs and constraints, you can make informed decisions about how to allocate resources effectively.
  • Child and Spousal Support: Financial conversations are crucial when children or spousal support are involved. Determining child support or alimony payments requires open and honest discussions about income, expenses, and the needs of those involved. These conversations ensure that financial obligations are met, allowing both parties and any dependents to maintain a reasonable standard of living.
  • Future Investments and Retirement Planning: Divorce often necessitates adjustments to future investment plans and retirement strategies. Discussing your post-divorce financial situation allows you to reassess your investment goals and make necessary adjustments to your retirement plans. By taking these conversations seriously, you can align your financial future with your changed circumstances and ensure long-term financial security.
  • Empowerment and Independence: Having financial discussions after a divorce is empowering, as it allows individuals to regain control of their financial lives and build independence. It provides an opportunity to understand personal financial strengths and weaknesses, identify areas for improvement, and develop strategies for achieving financial independence. These conversations help foster confidence and empower individuals to take charge of their financial well-being.

Ultimately, these discussions empower individuals to regain control of their financial lives, embrace a fresh start, and pave the way towards long-term financial independence and stability.


While the path to financial independence after divorce may have its challenges, it also presents a unique opportunity for growth and self-empowerment. By assessing your financial landscape, setting SMART goals, crafting a solid financial plan, educating yourself, and seeking professional guidance when needed, you can rebuild your financial foundation and embrace a fresh start. Remember, your journey to financial independence is a marathon, not a sprint. Stay committed, be adaptable, and celebrate each milestone along the way. You have the power to shape your financial future and create a life of stability and abundance.

About the Author

MichelleAttorney Michelle Perkins is well known for her practice in the areas of family law, estate planning, and probate, including representing generations of clients whose families have been represented by the firm since Mr. Owens arrived in Arizona back in 1967. Things have certainly changed over the years, but through good times and bad, the firm has been here for our valued clients, and in 2022 the firm celebrating its 55 Year Anniversary. Ms. Perkins’ professional organizations include the Arizona Chapter of the Entrepreneurs’ Organization, an organization dedicated to transforming the lives of entrepreneurs who transform the world of business, and Successful Women Owners Network (“SWON”), recognizing women who embody innovation, growth, community service and lifetime achievement.


Please enter your comment!
Please enter your name here