Those who are amidst the divorce process know for sure that there are many more issues to deal with than just their physical and emotional wellbeing. These are your finances we are talking about. Every divorcing person should stand the fact that very soon he or she will have nobody to rely on when money issues are concerned. So, for this very reason, it is important to start planning your financial future in time so that you don’t have to scratch a living after divorce. No matter how tough everything is on you, take care of your financial shape, not only for your own sake but also for the sake of your kids who count on you.
Don’t think that your friends or family members can give you a good piece of financial advice. Even though some of them have already been in your shoes, all divorces are different and what worked for them wouldn’t necessarily work for you. So, you must seek both financial and legal advice only from professionals no matter whether these are divorce lawyers, financial analysts, or credit counselors. Only these experts will objectively help you deal with your particular case. Below there are a few tips on how to take control of your finances during divorce:
- Audit your credit history reports
When going through a divorce, don’t neglect to review your all credit reports. By doing so, you can find all loans and accounts you have no idea about. Just like you will need legal help when filling out divorce forms, you will need it to find the debts which were incurred by your partner. You don’t want to pay the debts that you are not responsible for after a divorce, don’t you?
- Make sure that all joint accounts are closed
Your couple has probably opened one or more joint bank accounts. While it is more convenient for a married couple to use this sort of accounts, it is no longer advisable to do so when your relationship is ruined and you are looking for a good online divorce service to get a cheap divorce online. In this case, closing all joint accounts and opening your one is the right thing to do. Ascertain yourself that your partner’s name is removed from all accounts that you have unless you want your ex-to-be to hurt your credit score and withdraw all your money behind your back.
- Set up your new accounts for automatic bill payments
Once your all joint accounts have been closed, your new ones must be set up for regular bill payments; otherwise, you are likely to get behind on important payments. The last thing you want is to be deprived of amenities like the Internet, water supply, electricity, etc. simply because you failed to pay your bills duly.
- Build your credit score
Perhaps, after divorce, your credit score will drop, particularly if you have no bank accounts held by you and nobody else. You can improve it by applying for your credit card. It would be better if you did this long before you are officially divorced and your score drops.
To start building a positive credit history, make a purchase or two and pay them off as soon as possible. But make sure that you don’t spend more than you can pay back. By incurring debts you can make your financial matters even worse.
- Make relevant changes to your documentation
Take your time to change the relevant details (second name, marital status, and so forth) on your driver’s license, health and car insurance policy, utility bills, pay and tax records, etc. While you can make some changes long before you file a divorce packet, you have to wait until the dark days are over to make the rest.
- Disinherit your partner
Be ready to pay for legal fees as you cannot go without a lawyer here. Even though it may cost you much, so and in no other way, you can leave your ex-to-be out of your living will, power of attorney, trust, etc. You need this as you don’t want this person to make any decisions on your behalf, don’t you? Also, make sure that your spouse is no longer named as a beneficiary on your life insurance, IRA, etc.
- Install professional software
To track all expenses including child maintenance, spousal support, and meal expenses, you should install a professional finance app on your device. Mint, Wally, Acorns, and many other applications are meant to make it easier for you to take control of your funds, stick to your budget, and increase your savings. Just like you need a good finance app amidst the process, you will need it after.
- Learn how to get control of your finances
In most families, all the finances are usually managed by one person. This means that he or she is responsible for paying the bills, planning out the budget, recording all withdrawals and deposits, etc. If this all is about your spouse, then you probably have no idea of how to do this regularly by yourself. In this case, look for professionals who know all the angles of financial services, tax structure, and financial planning and who will help you manage your money in the early days after a breakup. Later, think about taking an online course in financial management.