If you believe divorce is in the foreseeable future, it’s a smart move to starting planning your finances and budget before divorce proceedings begin. Transitioning to a life after divorce will be much easier and with less of an upheaval when you are financially prepared. Meet with your planners, use online resources and create a divorce team so you can expertly navigate the details of a divorce. This post will discuss some suggestions to help get you started and ensure a smoother journey on this difficult path.
Meet with a Financial Advisor and Estate Planner
Make a plan to meet with a financial advisor to review bank accounts, life insurance policies, retirement funds and other important financial papers. If these accounts are in your name, your advisor will ensure the right beneficiaries are listed and the funds invested in are appropriate for your situation. An Estate Planner can help you draw up a new Will, advise on obtaining new insurance quotes and advise on your tax situation. Deductibles and other taxation issues will arise, especially if children are involved.
Open your own financial accounts
If you don’t already have your own personal bank accounts or credit cards, open them now and start using them. It can be difficult to obtain credit after your divorce, especially if you are a stay-at-home mom or have put your career on hold. While still married, you can use your shared household income when applying for credit.
Review your credit report
Obtain your credit report and review it for anything that may have tarnished your credit history. If mistakes are present in the report, take steps to correct them now. Pay down any debts you have to improve your credit rating.
Become familiar with online resources
You can find online tools and mobile apps to manage expenses for both households after the divorce. These are great tools to capture expenses and income to keep the accounts balanced and are especially important when children are involved. If your divorce settlement will include monthly support payments, a feature in this online resource will send out friendly reminders that payment has not yet been received which can help to avoid conflicts in your post-divorce relationship with your spouse.
With a looming divorce you will experience many emotions from sadness to worry to peace of mind. Having familiarity with your current finances, especially if your spouse handled the money will bring you confidence and security about your future. Keep your team and resources close at hand so you too can look forward to a single, joyous and independent life.