Financial management is hardly ever simple, especially when your marriage ends. Untangling your money and assets from your spouse is a complex ordeal that can result in an upheaval of your finances. If you are not careful, a divorce can cause you a significant amount of money troubles.
Ending your marriage does not need to cause you an unnecessary amount of financial turmoil. By playing your cards right, you can save money and remain stable. Take notice of the following tips to keep your finances in check before, during and after divorce.
Be wary of unsolicited advice
There may be several people in your life who want to help you through your divorce, but take what they say with a grain of salt, especially if they do not have financial or legal backgrounds. Do not make a decision simply because a friend or co-worker advises you to do so. Ultimately, your choices are up to you and your attorney.
Build a budget
Transitioning from a dual-income situation to a single income one is challenging. Outline every detail in your budget, including:
- Mortgage or rent
- Car payments
- Tuition funds
A good budget accounts for short- and long-term expenses. This will help you adjust to your new normal and avoid overspending.
Shut down joint credit cards and establish your own credit
As soon as you file for divorce, you should stop accumulating debt that belongs to both you and your soon-to-be-ex-spouse. If you rack up more joint debt, you may end up damaging your credit and complicating your divorce even more. This may involve losing some credit history and a dip in your credit score, so it is vital to build or re-build your own credit as soon as it is feasible.
Divorce may throw a wrench into your financial situation, but you can make it out just as stable if not more successful than before.