Divorce can be an emotionally and financially draining experience, especially for women who were not the primary earners in their marriages. While high-profile cases like Siohvaughn Funches, the ex-wife of NBA star Dwyane Wade, bring media attention to the financial struggles of celebrity ex-wives, the truth is that financial mismanagement after divorce is not just a celebrity problem—it affects women at every economic level bar none, and I’ve seen it happen personally with my own eyes.
When most women see what Siohvaughn Funches walked away with, you’ll probably hear them say: “GIRL! She’s set for life!” This is the absolute wrong type of thinking indeed. It’s like so many of us who feel wealthy once we get our hands on that long awaited Tax Return check to head straight down to the shopping mall feeling we can buy out the merchandise of every store there! LOL! Oh how reality sinks in when one realizes that a whole bnch of damn near unless items were bought yet not one utility bill was paid in the financial high that blinded them from what was more important.
Whether you walk away with a $5 million settlement or a $150,000 lump sum, the reality is the same: if you don’t manage that money wisely, it will disappear faster than you think. Many women assume that a large payout means they can maintain the same lifestyle they had during their marriage, only to find themselves in financial ruin years later. But with the right mindset, planning, and discipline, post-divorce life can be one of independence, financial security, and even prosperity.
The Illusion of Wealth: Why Money Drains Faster Than Expected
Many women who receive a substantial divorce settlement believe they have more than enough to last a lifetime. However, a lump sum of money—no matter how large—shrinks rapidly when spent recklessly or without long-term planning.
- Taxes and Legal Fees – Many women don’t account for the taxes owed on certain settlement structures or the legal fees that continue post-divorce, such as custody battles or appeals.
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Lavish Spending – Maintaining the same luxury lifestyle from marriage, such as expensive vacations, designer items, and dining out regularly, drains wealth quickly.
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Inflation and Rising Costs – The cost of living constantly increases, and what seemed like a fortune 10 years ago won’t have the same purchasing power in the future.
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No Income Stream – A settlement is not a salary. Without a sustainable source of income, even millions will eventually run out.
The Key to Long-Term Financial Security: Thinking Like an Investor, Not a Spender
To avoid the financial downfall that many post-divorce women face, you must treat your settlement as your lifelong financial foundation. That means structuring your life in a way that ensures your money lasts and continues to grow.
- Buy a Home in Full—No Mortgage, No Rent Worries
One of the biggest mistakes divorced women make is continuing to rent or purchasing an extravagant home with a high mortgage. A smart move is to purchase a modest, fully paid-off home that eliminates monthly rent or mortgage expenses.
Example: When I moved to Ghana, while it wasn’t a divorce scenario as Mrs. Scurv and I are very much still married, I built a home outright and bought land, ensuring that no matter what, I have a place to live with little to no overhead costs. Even if your situation is different, you can still apply this mindset—whether by buying a smaller home, relocating to a more affordable area, or choosing a condo with minimal maintenance costs. as a matter of fact, securing oneself should be the predominate mindset no matte WHAT your personal situation happens to be.
- Downsize and Adjust Expectations
Accepting that your financial situation has changed is crucial. Downsizing doesn’t mean giving up a good life; it means creating a sustainable one.
Move to a city or state with a lower cost of living.
Reduce unnecessary luxury expenses like designer clothes, luxury cars, and high-end memberships.
Cut entertainment and social expenses that don’t align with your long-term goals.
- Secure a Reliable Income Stream
Even with a large settlement, it’s wise to have an income source. This could be:
Investing in rental properties
Starting a business
Finding a stable career or part-time work
Investing in dividend stocks or passive income opportunities
Having an income allows you to stretch your settlement further and keeps you from burning through your money too quickly.
- Budget Like Your Future Depends on It—Because It Does
A proper budget isn’t about restricting yourself—it’s about making sure you never end up broke.
Create a Lifetime Financial Plan – If you received $300,000, break it down by estimating how much you’d need per year to survive for the next 30 years.
Prioritize Necessities First – Housing, healthcare, transportation, and food should be your top financial priorities.
Use the “Pay Yourself First” Strategy – Before spending, set aside money for emergencies, investments, and future security.
- Control Emotional Spending
One of the biggest pitfalls women face post-divorce is spending emotionally. Whether it’s trying to “show” your ex that you’re doing well, indulging in retail therapy, or overspending out of loneliness, emotions can wreck financial stability. It’s the same mentality as when a woman cuts off all of her hair and dyes it a flaming color to “show” that she’s “brand new” to the world even though she’s still obviously not over the pain of her recent breakup.
Find new ways to cope – Therapy, journaling, fitness, or joining a support group can help you process emotions in a healthy way.
Avoid impulse spending – Take a 48-hour pause before making any large purchase.
Stick to a financial plan – Remind yourself of the long-term goal: independence and security.
Conclusion: Thriving, Not Just Surviving, After Divorce
The end of a marriage does not have to mean financial ruin. Whether you’re receiving a large settlement or a modest payout, the key to long-term success is financial discipline, strategic planning, and emotional control.
Instead of viewing your divorce settlement as a jackpot, treat it as the last paycheck you’ll ever receive—and plan accordingly. Buying a home outright, downsizing expectations, securing income, and budgeting wisely will ensure that you remain financially stable for life.
Life after divorce can be beautiful when approached with the right mindset. It’s not about trying to maintain a lifestyle that was tied to another person’s income—it’s about building your own sustainable, independent future.
Women who embrace financial literacy, self-sufficiency, and smart investments will not only survive but thrive after divorce. With the right strategy, your divorce settlement can be the start of an incredible new chapter—one where you control your destiny and never have to depend on anyone again.
