It’s easy to let the emotional upheaval of a divorce distract you from your financial responsibilities. After all, your financial situation will likely change as your marriage dissolves. However, you must have a plan for how to protect yourself in this new reality. This guide is designed to help you do just that.
Calculate Your Expenses
It is important to understand how your expenses will change if you are going through a divorce. Calculating your expenses is crucial to protecting your finances during a divorce. This means you need to consider all the costs associated with maintaining your current lifestyle, including rent or mortgage payments, utilities, phone bills, and insurance costs.
You also need to consider expenses for the upkeep of your car and home. For example, if you need new roofing, a stone-coated steel roofing has a Class A fire rating, a Class 4 hail impact resistance rating, is lightweight at only 1.4 lbs. per square foot, and is completely recyclable. This material can help save money in the long run because it will not need to be replaced as often.
Focus on Your Children’s Needs
After a divorce, the non-custodial parent spends around 88 days with the child annually. Therefore, if possible, you should focus on your children’s needs. If you can’t afford to pay for their expenses yourself, you should try to get help from your spouse or the other parent. You can do this by talking to them about it and explaining that you need financial assistance in raising your kids.
Get a Copy of Your Credit Report
It is important to protect your finances and credit if you are going through a divorce. The three major credit bureaus will provide you with a copy of your credit report if you request it. Over four billion records were potentially exposed due to data breaches in the first half of 2019, which is crucial information. You want to make sure you know your credit score and history before applying for loans or new credit cards. You also want to ensure that there are no suspicious charges on your account. If there are, contact the bank or company immediately.
Open a Separate Bank Account
You may not want to think about money when you’re going through a divorce. But it’s important to protect yourself and your finances, so opening a separate bank account is crucial. When you open a new account, ensure your name is on the account, not your spouse’s. Also, be sure to keep track of what goes into this account. It’ll come in handy when it comes time for financial settlements.
Take Stock of Your Assets
Make sure that you have a clear understanding of your finances. Your bank statements, credit card records, and other financial documents will be important during the divorce proceedings. You need to ensure that these are organized and easy to access at all times.
In addition to this basic understanding of your finances, it’s also important to know your assets and how they are valued. For example, if you own property or vehicles, get an appraisal done so that you know exactly how much they’re worth. You may also want to consider consulting with a financial planner before deciding what assets should be sold off as part of a divorce settlement agreement.
Talk to a Financial Adviser Before Settling Anything
A financial adviser can help you understand what’s going on with your finances and ensure that you’re not making any hasty decisions that could hurt your future well-being. They can also help you understand how the divorce process will affect your financial situation and give advice on protecting yourself during this time. Once you have this information in hand, it should be easier for both parties to devise a plan to divide their finances during the divorce process.
If you’re going through a divorce, you’re aware that it’s a difficult time. However, it need not be as challenging as you believe. With the right information in your corner and the right financial preparations, you can get through this process with your finances intact and your future bright.