Bounce Back Stronger: Top Financial Resolutions to Make After Divorce in 2025

Start fresh in 2025 by taking control of your finances after divorce. Explore practical tips for rebuilding your budget, adjusting your retirement plans, and setting financial resolutions for a stable, prosperous future.

Divorce is more than just an emotional upheaval; it’s a financial tidal wave. A survey by Fidelity Investments found that over a third of people were still trying to get back on their feet financially, even five years after their divorce. And for women, the journey can be even longer.  

2025 offers a fresh start. It’s the perfect time to reset your financial goals and create a sustainable plan for the long haul. But why set financial resolutions? They serve as a blueprint to regain control and rebuild financial independence, providing the stability needed for a healthier financial life. 

Explore practical financial planning tips tailored for newly divorced individuals. Whether you’re just beginning your journey or already on your way, these insights will help you take proactive steps toward a stronger financial future in 2025 and beyond. 

2025 Resolutions for a Financially Strong and Stable Future

Taking proactive steps to regain control over your finances is key to building a stable and secure future. Set the tone for 2025 by making actionable financial resolutions. Here are practical tips to get you on the right track post-divorce.

Review and Update Beneficiaries

Post-divorce, beneficiary designations on life insurance policies, retirement accounts, and other financial assets may still list your ex-spouse, which could cause complications in the event of death. Leaving these unchanged can lead to unintended outcomes, such as your ex-spouse inheriting assets you no longer want them to receive.

When going through a divorce, it’s crucial to review and update all beneficiary designations on your retirement accounts, such as 401(k)s and IRAs, as well as life insurance policies. This step ensures that your assets will be distributed according to your current wishes and circumstances. Take the time to carefully consider who you want to designate as beneficiaries, including your children, other family members, or new partners.

In addition to updating your beneficiaries, double-check your estate plan to make sure your will and any trusts align with your new circumstances. This ensures your assets are distributed as intended and helps prevent potential legal complications. By attending to these details promptly, you can have peace of mind knowing that your financial affairs are in order and your wishes will be carried out accordingly.

Rebuild and Adjust Your Budget

Divorce often brings about significant changes to your financial circumstances, requiring careful reassessment and adjustment of your budget. While challenging, this process empowers you to transition to a new economic reality, whether managing on a single income, accounting for child support or alimony, or covering day-to-day expenses. By creating a new budget that aligns with your current goals, you take charge of your financial situation, feeling more in control and empowered.

To start, assess your income accurately. Consider all sources of income, including alimony, child support, or employment income. By understanding the full extent of your financial resources, you can better plan and allocate funds to cover your expenses.

Tracking your expenses is another key step in rebuilding your budget. Use budgeting tools like Mint or You Need a Budget (YNAB) to monitor your spending habits and gain insights into where your money is going. This will help you identify areas where adjustments can be made and determine which expenses can be trimmed or eliminated to align with your new financial circumstances.

As you rebuild your budget, it’s also important to consider any new financial obligations resulting from divorce. This may include child-related expenses, such as education or extracurricular activities, or potential changes in housing or transportation costs. By factoring in these new expenses, you can ensure your budget is comprehensive and realistic.

Plan for Taxes Post-Divorce

Your tax situation post-divorce requires a review. According to the IRS, approximately 47% of divorced individuals miss out on tax deductions or credits due to improper filing after divorce.

Several factors come into play, including changes to your filing status, dependents, and obligations related to alimony and child support. Understanding these tax considerations will help you to avoid surprises when tax season arrives.

When it comes to your filing status, you’ll need to choose the one that best fits your situation. If you’re responsible for caring for children, filing as ‘head of household’ could give you a higher standard deduction.

It’s also important to determine who’ll claim the children as dependents for tax purposes. This decision should be based on your custody agreement and any applicable legal requirements.

Alimony and child support payments are significant tax considerations. Understanding the tax implications of these payments, both as the payer and the recipient, will help you to be financially empowered. There’s information available online from the IRS you may find helpful. Consult a tax professional to ensure you meet all the requirements and take full advantage of any available deductions or credits.

Retirement Planning: Start Fresh, Plan for the Future

Divorce can significantly impact your retirement planning, especially if your retirement accounts are divided as part of the settlement. Considering these changes, it’s necessary to reevaluate and adjust your retirement strategy for a secure financial future.

One of the first steps is to understand your retirement accounts’ status fully. If assets were split during the divorce, you must know how this division affects your retirement goals. This knowledge will serve as a foundation for making informed decisions about the next steps in your retirement planning journey.

In addition to assessing the current state of your retirement savings, it’s important to rebuild and replenish your retirement funds. Take the time to evaluate how much you’ll need to save moving forward and develop a comprehensive plan to achieve your retirement goals. Consider consulting a financial advisor who can assist with post-divorce financial planning to help you navigate complex retirement plan options and make informed decisions.

Focus On Mental and Emotional Financial Health

During the challenging divorce process, prioritize your mental and emotional well-being and financial stability. The emotional toll can make financial decision-making more stressful than it needs to be.

Creating a healthy financial mindset starts with setting achievable goals. Start small and celebrate each milestone you achieve. Accomplishing smaller goals will boost your confidence and motivation to tackle larger goals.

In addition to setting goals, seeking professional guidance can be immensely beneficial. Financial planners and divorce coaches are trained to help individuals work through the entanglements of divorce and financial planning. They can provide expert advice tailored to your unique situation and assist in creating a roadmap for your new economic reality.

Contact the Knowledgeable Family Law Attorneys at Smedley Law Group, P.C. in Woodbury, NJ Today

If you’re facing divorce, you’ll also most likely be dealing with another matter like child custody, child support, or division of assets, so you’ll need to speak with a qualified attorney. The New Jersey family law attorneys at Smedley Law Group, P.C. represent clients throughout the state, including West Deptford, Woodbury Heights, Runnemede, and Westville. 

We understand how challenging this time can be for you, which is why we will fight hard to protect your interests and those of your loved ones throughout the legal process. Call us at (856) 251-0800 or fill out our confidential contact form to schedule a consultation. Our office is conveniently located at 750 Cooper Street, Woodbury, NJ 08096.The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.