Alex always prided himself on being a disciplined saver. He built a strong career, set money aside every month, and felt confident about his retirement plans. But everything changed after a messy divorce.<\/p>\n
Half of his life savings went to his ex, and the rest disappeared into a black hole of legal fees. Now, he\u2019s paying hefty alimony and child support, leaving him with barely $200 a month to save for the future.<\/p>\n
At 50, Alex is staring down a daunting question: How do you rebuild your financial life when you\u2019ve lost everything?<\/p>\n
Alex is far from alone \u2014 as many Americans know well, divorce doesn\u2019t typically come cheap. But costs can really spiral out of control, especially when couples can\u2019t agree on issues like alimony, child support or splitting property.<\/p>\n
A 2019 survey<\/a> from Martindale-Nolo Research found the average cost of a divorce was $11,300, and the median cost was $7,000. An uncontested divorce (meaning there are no disagreements on issues such as alimony, dividing property and\/or debts, child support and child custody) is far cheaper, averaging $4,100 with a lawyer and just $925 without one (not including mediation fees).<\/p>\n<\/p>\n But as the Martindale-Nolo survey found, the more contested issues a couple had, the more expensive a divorce became. Settling a dispute through lawyers \u2014 without having to go to trial \u2014 cost couples an average of $10,600. But for those who had to go to trial with at least one contested issue, their expenses shot up to an average $20,400. And those with two or more issues ending up being out around $23,300.<\/p>\n And then once the legal aspects have been settled, there\u2019s a whole other host of money issues to deal with. The loss of shared savings, retirement accounts and the equity of a family home can often set your retirement plans back by decades. According to a report<\/a> from the Center for Retirement Research at Boston College], divorced households have about 30% less wealth on average than continuously married households, even after accounting for age, education, and income level.<\/p>\n Story continues <\/p>\n It\u2019s no wonder Alex is feeling some stress over how to move forward \u2014 but it\u2019s not entirely hopeless.<\/p>\n Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan \u2018works every single time\u2019 to kill debt, get rich in America<\/a> \u2014 and that \u2018anyone\u2019 can do it<\/p>\n It might feel impossible, but financial recovery is achievable with a focused plan. Even if you\u2019re working with a much smaller income, there are concrete steps you can take to stabilize your finances, rebuild your savings and slowly regain momentum toward retirement.<\/p>\n Adjust your lifestyle and budget:<\/p>\n Create a lean budget<\/a> that includes savings, even if it\u2019s just $100 to $200 per month.<\/p>\n Prioritize avoiding new debt.<\/p>\n Downsize where possible:<\/p>\n Housing and transportation are the biggest budget drains. Consider selling a home that\u2019s too large or downsizing your car.<\/p>\n Explore creative arrangements like \u201cbird nesting<\/a>,\u201d where parents rotate living in the family home to save costs.<\/p>\n Increase your income:<\/p>\n Negotiate a raise or look for a better-paying role.<\/p>\n