February 06, 2012
As the annual January hike in divorces cases begins to die down, experts have unveiled a slew of money-saving tips to help those separating from their spouse overcome the financial difficulties divorce can bring.
According to the Office of National Statistics, divorce rates for 2010 increased for the first time in seven years and divorce is seen as one of the key reasons people find themselves in debt.
But debt solution provider Atlantic Financial Management believes those facing financial pressures should start a monthly budget plan and brace themselves for future shocks to help them gain control of their finances.
“Divorce is identified as the primary reason for nearly 8% of clients getting into an unmanageable debt situation and starting a Debt Management Plan (DMP),” said Kevin Still, Director of Atlantic Financial Management.
“Divorce is never easy, but planning stretched personal finances once you have come out of the other side can really help reduce concerns about the future and cope with any difficulties that come as a result of this period of monumental change. With a monthly budget plan in place, you can minimise the risk of debts spiralling out of control.”
“Once you have identified all your outgoings and income, you should be in a much stronger position to determine whether there is a serious gap in your finances. Equally important is to map out the timing of income and payments over the month to identify when your finances are at their most vulnerable and, therefore, may require careful cashflow planning.”
If you’re struggling with post-divorce finances, financial experts have provided a helpful list of incomings and outgoings you should always refer to in order to better organise your finances.
Income:
• Part-time work by any family member
• Income from renting out properties or sub-letting rooms in the house
• Any type of government benefit
• Maternity pay, statutory sick pay or any other financial support they may be receiving
Outgoings:
• Household Expenditure - Rent, mortgage, National Insurance, council tax, water rates, gas amp; electricity bills, telephone bill, any cable, satellite or internet subscriptions, TV licence, contents and buildings insurance
• Travel Expenditure - Any petrol costs, car insurance, road tax, MOT and servicing
• Child Care Costs
• Health Costs
• Leisure Costs
• Financial Commitments and Loans
