After the dust has settled in a separation, it can be daunting to face building a new future which looks different from the one you planned. Part of this may include getting by on a different budget than you are accustomed to or had expected.

However, there are steps you can take to secure your financial future and allow you to focus on building your life instead. Making sure any remaining ties are unknotted can allow you to begin this process with more certainty about your position.

TAKE ACCOUNT OF YOUR ASSETS

Two of the main assets discussed in divorce are pensions and property. When it comes to pensions, depending on your settlement, this was likely either split through ‘pension sharing’ or ‘pension offsetting’.

If you opted for pension sharing, your pension pots were divided and you may have had some money added or taken out of your pot in the split. If you opted for pension offsetting, the amount in your pension would stay the same as before, with other assets, such as property, being used as an equaliser.

Regardless, it’s a good time to get an accurate picture of how much you have in your pension.

If you’ve had multiple jobs, you may have multiple pension pots. By combining these into one, you can get a more straightforward picture of how prepared you are for retirement.

When it comes to other assets, such as property, you will need to ensure everything you now own solely is listed just in your name.

In addition to the big-ticket items such as pensions and homes, you likely opened a variety of smaller accounts during your marriage which need to be accounted for.

If you have joint bank accounts, you will likely need to close them and reopen a new account owned only by you.

Once you have a good idea of what assets you own, you will also need to establish your insurer is aware of these changes. This way, you can make sure you are only insuring the assets still in your possession.

CREATE A NEW RETIREMENT PLAN

Once you have a clearer understanding of what you have in your pension, you can start to form an idea of how your retirement will look, and if you need to start making additional contributions to keep it on track.

You will now be planning your future with one state pension instead of two, so the amount you need to save independently may rise.

In the most recent report from the Pensions Lifetime and Savings Association, estimates for a one-person household in retirement were £13,400 per year for a minimum lifestyle, rising to £31,700 per year for a moderate lifestyle, and £43,900 for a comfortable lifestyle.

Currently, the full state pension allowance sits at £11,973 per year, so the rest of that income would need to come from your own savings.

BUILD YOUR BUDGET

Starting your new life as a single person will likely mean adjusting how you spend. If you have children at home, you will need to have clear guidelines in place for how costs will be split, but you will also need to ensure your own lifestyle fits the budget you need to work with.

Some of these may be easy wins: if you have subscriptions or memberships your ex-partner was a fan of, but you can do without, remove them from your budget and make new space for other hobbies and interests. You may also be able to cut back on grocery bills or pay less in utilities for a smaller living space.

Keep a close eye on your expenses in the first few months, so you can get an accurate picture of how much to budget and where you can cut back. Whether it’s a spreadsheet, an app, or just a pen and paper, taking a visual account of this information can create a clearer idea of your finances.

If you need to start contributing more to your pension, or if you have plans to save for a home, ensure that you make these savings a priority. This can allow you to start building an independent life.

KEEP AN EYE ON CREDIT

If you held joint accounts, there’s a good chance your credit score is intertwined with your ex-partner’s. Depending on your credit scores, delinking those accounts may hurt or help your own score.

You can check your own score as often as you want without harming the number, and you are required to be offered a free credit score check by each of the three major credit bureaus every year.

Having a gauge on this number can be essential for your planning, especially if you would like to buy a home independently in the future.

UPDATE YOUR BENEFICIARIES

Even once your separation has completed, your will does not automatically change. If you would no longer like that person to receive assets in the event of your passing, you will need to update this paperwork.

It’s also important to check if they are the guardian or executor of your assets, not just the beneficiary, and decide if this is something you’d like to change.

Bear in mind when your assets are not inherited by a spouse, they can become subject to inheritance tax even if being passed down to children.

While sorting out your finances is likely one of the last things you’d like to be doing during a sensitive time, it can provide you with a large amount of protection and comfort in the future.

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