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Tips When Prepping Finances for a Divorce

Tips When Prepping Finances for a DivorceDivorce and finances go hand in hand. We all know that divorce can be expensive. In fact, that’s why so many people avoid it in the first place. Fear of starting over, or beginning a new life that may involve a lower standard of living than one is used to can be enough to make a miserable spouse stay stuck in an unhealthy situation. Unfortunately, this leads to very unhappy marriages where one person is dependant on another, leading to the hopeless feeling of being forever trapped.

 

This is no way to live life. If your marriage is truly unhealthy and the only aspect holding it together is financial concerns, it may be time to reassess your attitude towards financial independence. It is never too late, and you are never too old to “start over” financially, so to speak. Though you may have to rent an apartment instead of own, or cut back on vacations and dining expenses for a while, you can rebuild your life and free from a life of debt and dependence.

 

In order to seek the financial independence and stability you deserve, you must assess you and your spouse’s current financial situation prior to filling out divorce documents and reaching a final divorce settlement. Here are 5 tips when prepping finances for a divorce, so you can file for divorce and receive the benefits and assets you are entitled to.

 

  1. Meet with a financial advisor and look over your wills and trusts. If you have always depended on your husband or wife to make financial decisions for you and your family, it may behoove you to meet with an independent financial advisor who can assist you and give you some much needed advice on becoming financially independent. According to a financial article in USA Today, before getting a divorce, it is crucial to set up your own account, get your own credit card, and remove any type of joint account that you may have with your spouse. Take what is ethically yours from a joint checking account (typically half), and put it in your own account under your own name.

 

Furthermore, check out any Wills or Trusts you may have set up while married. Change your beneficiary designations in regards to your assets so your spouse is not listed. Many people forget to do this. If, heaven forbid, something happens to you, that money will go to your ex spouse rather than someone you would rather it go to, such as a family member.

 

  1. Resolve mortgage and rent payments. Your creditors don’t care about your personal situation at home. They want and need money that is owed to them, regardless of what is going on between you and your spouse. Ask Men explains that, “you may want to move out as soon as you see the relationship is toast, but doing so may hurt your claim to the home and, again, you are still responsible for over 50% of the mortgage payments.” Yikes! So what are you supposed to do in this type of situation?

 

Sometimes, if the split is amicable, two people can come to an arrangement about the house, who keeps it, and what concessions need to be made by one of the two parties. However, in many cases when the circumstances are not amicable, a judge may mandate that the property goes on sale in order for the settlement process to be expedited.

 

  1. Start saving money and start planning for the future. Save whatever money you can. If you don’t have a job because you are dependent on your spouse for income, start looking for a job quickly. This can be frightening if you haven’t worked in a long time, or are lacking a certain skill set, but it is possible to find something temporary until you get back on your feet.

 

  1. Prepare to give some things up. The people who have the hardest time dealing with divorce are those who are used to a certain lifestyle and cannot adjust. Become emotionally and mentally prepared to live a different type of life for a while. Remember, nothing is permanent.

 

  1. Try to work together. Yes, we know it’s hard to work with someone who you’re getting a divorce from. But it’s possible. The more you work together with your ex on resolving your financial concerns before the divorce is finalized, the less nasty it will be later. If it’s possible in any way to talk and sit down amicably and discuss everything from mortgage payments, to custody, to property, to career paths, the sooner you do so, the better.


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