Even under normal circumstances, maintaining financial balance is something we struggle with. Therefore, the financial upheaval that comes after a divorce is something a lot of people try and avoid, and for some not so successfully.
Divorce is a difficult time where one is struggling with emotions and substantial changes. You don’t want to add financial issues to this equation. Here are a few tips that will help you remain financially ahead.
Update Personal Accounts
For starters, it is crucial to separate all banking accounts. You are starting over with a new financial life. Therefore, close all joint accounts, including investment accounts. Additionally, don’t forget to update your bank accounts, utility accounts, insurance companies, credit card companies, driver’s licenses, and your children's schools with your change of name and address if necessary. The same should be done for titles on your homes, vehicles, and other large assets.
It’s also the time to create a budget for post-divorce life. To do this, start by listing any current expenses that you share with your spouse. Once divorced, how will these change? Will you keep the house or will your spouse? What monthly bills will you have? Have you acquired marital debt? If you have children, how much income needs to be allotted for their needs?
Keep these factors in mind as you start to create a budget for the future. Once you have a financial plan in place, you will be better equipped for maintaining financial security after you are divorced.
Did You Sign a Prenup or Postnup?
Commonly referred to as the prenup, it is the simplest way of effectively dealing with a divorce, especially the long and painful ones. By signing a prenup, you can separate your finances right from the start. A prenup will save you money by limiting alimony payments, protect your business, and limiting your debt liability. Also, you get to decide how you split property without court orders.
The only problem is a prenup must be signed before marriage. However, if you are already married and wondering how to protect your finances, you can also look into obtaining a postnuptial agreement. A postnup allows you to accomplish all of the same things as a prenup but can be signed while you are married. If you have either one of these documents, your finances will be better protected for post-divorce life.
Work on Your Credit and Paying Off Debt
It is possible that a divorce can substantially ruin your credit; therefore, it is essential to build it up as soon as you can. Stay on top of credit card bills, and always pay your bills on time. If you will be obtaining a new residence or vehicle, good credit will be essential. Also, keep in mind that debt acquired during a marriage is divided in a divorce, which means that you may be responsible for paying a portion of these payments. Consider how this debt may affect your credit.
Rech Law is here for you during your divorce. Call us today at (704) 659-0007 to set up a consultation with our Charlotte divorce attorneys.