Don’t Let Your Divorce Wreck Your Finances
Divorce can be devastating, both emotionally and financially. It’s a delicate time that can easily result in a lot of poor decision-making, especially if you are feeling overwhelmed by the overall process. And since many of these decisions can have a lasting impact on your finances for an extended time, it is important to choose wisely. It can save you the additional insult to injury and shorten the time it takes to recover financially. I see you Beautiful, and fortunately, many of the things that need to be done after divorce don’t require a lot of thought. In fact, some choices are easy to make. Follow these strategies to get your finances in order after divorce:
1.Open your own bank account and close any joint accounts. If you’re getting divorced, you don’t want to be stuck with any financial liabilities your soon-to-be-ex creates. This doesn’t just include bank accounts. Any credit cards are also potential nightmares. Contact your bank and credit card companies and explain the situation. Open new accounts in just your name. This might be easier to do before closing the joint accounts. Ensure that you’ll have access to money throughout the divorce process.
2. Consider your housing situation. This can be immensely complicated by the presence of children. Otherwise, it’s often easier to sell the home and move on. When children are part of the picture, it’s often best to consult with an attorney to examine your options. On the other hand, if children are not involved, or you will soon be an Empty Nester, do you really need all of that house? In addition to the mortgage to remember to factor in the utilities, maintenance, lawn care.
3. Be aware of all your assets. Do you know the full extent of your financial holdings during your marriage? In many cases, one spouse handles the financial matters, and the other is happy to stay out of it. This is nothing to feel ashamed about or beat yourself up about. We all our strengths, and if this came more naturally to your husband than you, it’s called a partnership. However, now that the partnership is dissolving, it’s time for you to get smarter and develop an accurate picture of what you have. You might be surprised by what you discover. Now you must collectively decide how to handle the assets. Do you split them? Sell them and split the proceeds? Or hire a lawyer and battle it out? Additionally, if you get the feeling your soon-to-be ex might be hiding assets, consider hiring a forensic accountant.
4. Get a copy of your credit report. It’s important to know where you stand financially. It’s just as important to be aware of all of your accounts. Your spouse may have opened a joint account or credit card without your knowledge. The better your credit, the easier it is to move through the world. Divorce is a difficult time for all. But a divorce can be challenging if financial matters are not handled intelligently. Focusing your attention on housing, debt, income, and assets will make the transition easier. Federal law allows you to get a free copy of your credit report every 12 months from each credit reporting company. Learn more by visiting https://www.annualcreditreport.com/index.action.
5. Take a look at all your insurance needs. You might need to get on your own medical insurance plan. What items do you still own that need to be insured? Your insurance costs might be much less now. There’s no reason to carry more insurance than you need. Your situation has changed, so your insurance needs have likely changed as well.
6. Create a new budget. It is very likely your income and expenses have changed, so it only makes sense that your budget will change too. If you’ve gone from a two-income household to a single income, there’s likely less margin for error. Create a budget that makes sense for your new circumstances. I love a killer handbag or stilettos has much as anyone, but this is the time to really clear about needs and nice to have. Besides a Goddess is a Goddess no matter what.
7. CHANGE WILL AND THE BENEFICIARIES ON YOUR LIFE INSURANCE AND RETIREMENT ACCOUNTS. There’s a good chance that your beneficiary was your spouse. You’ll probably want to list new beneficiaries. For most accounts, this is easily accomplished by filling out a simple form. This step is often overlooked. Ensure that, in the event of your death, your assets go to those whom you want to have them.
8. Hire and regularly consult with professionals who can help you. Divorce is a process and a major change in your life which can affect everything from how you manage your schedule to who you call if your car breaks down. Think you can’t afford to hire anyone other than a lawyer? Think again. In fact hiring other experts to support you like a CPA, mediator, and especially a divorce coach may save you money, by helping you get organized and become more confidant which can lead to better decision-making that saves you time that is priceless. Many times, it is the cumulative list of a lot of little things which can increase stress during and after divorce as you seek to move forward with life.
Chin Up Beautiful … you got this!
