The end of a marriage can be difficult for Arizona residents. In addition to the emotional and mental turmoil that divorce brings about, divorcees must face a new financial reality. If you’re going through a divorce, there are some steps you can take to improve your financial standing as you enter the next phase of your life.
Buying a less expensive house than you can afford
Arizona is a community property state, which means any property acquired during your marriage belongs to both parties. Divorcees often choose to sell their marital home and split the proceeds after paying off the mortgage.
If you choose this route, consider purchasing a less expensive house than you can afford. Since you will live on a single income, saving money on monthly mortgage payments is an excellent place to start.
Create a budget and stick to it
Depending on the length of your marriage, you may be very accustomed to a certain lifestyle. It’s probably that the lifestyle you’ve grown accustomed to is a thing of the past in the aftermath of a divorce. Create a budget based on your new single-income lifestyle and stick to it.
Pay your bills on time
While different credit bureaus rely on different metrics to calculate your credit score, paying your bills on time is the most effective way to improve your credit rating. Even if you have to sacrifice some things that you enjoy, paying your bills on time will keep your credit score high as you move forward as a single person.
Untangling your finances is a difficult part of the divorce process. However, once you get on your own two feet, following some simple financial steps can help ensure financial stability.