How To Rebuild Your Financial Health After Divorce

The divorce process is expensive. There are plenty of lawyers' fees to pay and new financial burdens like alimony and child support may arise following a divorce -- which can eat away at people's savings.

Michael Brady, president of Generosity Wealth Management, offers a piece of advice, "Once your divorce is finalized you have to take control of your finances. You have to be proactive. You can't just assume that things will work out."

If you're going through (or have recently closed) a divorce, you'll need to recover emotionally, but don't neglect your financial health. If you do, you might face serious consequences.

Here are four steps you need to take after a divorce to rebuild your savings.

1. Get going

You might want a break from big decisions following a divorce. But Pam Friedman, a certified financial planner and founding partner of Divorce Planning of Austin, recommends that her clients skip that mental break and make financial plans quickly once a divorce is finalized.

But she doesn't recommend that her clients make big money decisions on their own. Many of her recently divorced clients are exhausted from the mental strain of the process, and might struggle to make the right decisions to rebuild their savings.

Friedman advises them to meet with their attorney and a certified financial planner to create a plan for rebuilding their wealth and to make sure they don't miss any important deadlines when it comes to signing up for insurance or changing the beneficiaries in their wills.

"There are deadlines out there that you don't even know existed," Friedman says. "You don't want to miss them. I hate it when clients come to me and say they just finished their divorce and they actually closed it six months ago. That's too much time."

2. Rebuild your credit