Many couples going through divorce worry about the financial impact it will have on their lives. Despite the challenges of addressing the financial concerns after divorce, it is important for couples to understand how their finances may change and what steps to take to create a secure financial future.
It can be very beneficial for individuals getting divorced to create a financial plan for life after divorce. Individuals should work with their divorce attorney to understand how their assets will be divided and what options they have to make sure they negotiate the best divorce settlement possible.
Navigating the financial aspect of divorce can be complicated and stressful at times. Below is a list of tips to consider when trying to create a new financial plan after divorce and ways to make the financial impact less stressful:
- Set a budget. This can help a newly divorced person understand their finances in a clearer picture. The budget should be based off a person’s income and expenses to see what kind of budget to create.
- Review your credit score. It is important to obtain a copy of your credit report and report any errors. Having a good credit report can help newly-divorced people find a new place to live, buy a new car and other items that may be necessary.
- Adjust taxes. Review your tax withholding to make sure your marital status is change and that you are paying in correctly.
- Gather financial documents. Make copies of important legal and financial documents like bank statements, credit card statements and retirement account statements.
- Open a new bank account. This includes opening a new checking and savings account in your own name. It is also important to open up a new credit card in your own name.
Source: Huffington Post, “Divorce Finances: How To Stress Less About Your Finances Post-Split,” March 6, 2013