Divorce is never easy, and it can be even more challenging for those escaping domestic violence. Achieving financial independence is crucial for rebuilding your life. Financial freedom means having control over your finances, which can provide the stability and peace of mind you need during this difficult time.
This freedom can be a powerful tool in breaking the cycle of abuse and securing a stable future. There are several steps you can take to begin pursuing it.
Understanding your financial situation
Before you can start building a financial foundation, it’s crucial to determine your current standing. Take inventory of your:
- Income: Salary, investments and any other sources of money
- Expenses: Rent or mortgage, utilities, food, transportation and other necessities
- Debts: Credit cards, loans and other financial obligations
- Assets: Savings, investments and properties
California law requires both spouses to serve their Preliminary Declaration of Disclosure before divorce gets granted. Be sure to take advantage of this requirement to gain a clear understanding of your financial situation.
Building a financial safety net
Creating a safety net can help protect you from financial abuse. You can start building yours by:
- Opening a separate bank account: Consider opening an account in your name only or with a trusted friend or family member.
- Building an emergency fund: Save at least three months’ living expenses to help cover unexpected costs.
- Prioritizing debt reduction: Pay off high-interest debts to reduce financial burden. Consider developing a debt reduction plan with a financial advisor or credit counselor.
- Developing a budget: Create a realistic budget that accounts for your income, expenses and savings goals. You can include a category for self-care and personal expenses.
- Seeking professional guidance: Consult a divorce attorney focusing on domestic violence cases. They can offer valuable insights that suit your needs.
Achieving financial independence and finalizing divorce are just two aspects of overcoming domestic violence. Don’t hesitate to seek additional assistance from support groups, local organizations and counseling services. These resources can also connect you with others in similar situations.