5 Important Financial Tips for Divorce
How to Keep your Finances in Check During Divorce
One of the biggest concerns of both parties going through a divorce is what their financial future will look like. Moving from a marriage where assets, bank accounts and debts were shared to a world where it is split in two can be extremely stressful. To ease the financial stress, you must analyze your present finances and also estimate your future living costs.
We’ve compile dthe best tips on how to keep your financial worries at a minimum.
1. Make a list of joint assets, accounts, and liabilities
When you make a list of your joint assets and accounts, ensure that you have access to them with the correct passwords. Organize all of your important documents including: bank and credit card statements, tax returns and checking and saving account statements.
2. Establish credit and close the joint accounts
Once you have your list of joint accounts, you need to close them and begin creating your own banking and credit card accounts, preferably at a different bank than you previously used. Until the divorce papers are signed, those accounts can negatively affect your credit rating and increase your debt.
3. Figure out what your future expenses will be
Your future expenses should include everything from monthly bills to average spend for groceries, gas and childcare per month. Take into account what your new income amount will be after divorce and figure out how your income will need to be distributed. You can apply for alimony if you think that your finances will not meet your expenses.
4. Change Your Status and Will
You will need to change your marital status on income tax records, property titles, health insurance and licenses. Make sure that anything listed in your will is actually items that you own after all property has been divided and that anything that your spouse owned or was responsible for has been removed from your will.
5. Establish a Cash Emergency Fund
A consideration in your divorce settlement should be in a lump sum emergency cash fund. Your emergency cash fund will give you access to cash when you have an unexpected circumstance like a medical need or a home repair. It will give you peace of mind knowing that there is some cash available for any emergency situations.