Even if divorce is the best solution for your future, it can represent a stressful time – both emotionally and financially. Dividing property, personal assets, digital assets and debt responsibility can be a confusing and complex process. Here are some tips that the recently-divorced can follow to strengthen their financial future.
- Close any shared accounts: You might have addressed some of these accounts during the property division phase of your divorce, but you should examine them post-divorce. It is crucial that you remove your name from bank accounts, credit cards or personal loans that your ex has responsibility for. This can prevent creditor confusion in the future. It is wise to transfer the balance to a solo card and cancel the account that contains both names.
- Set a strong budget: The months following your divorce can represent a tough financial transition. Your buying power has changed, your credit rating has changed, your earning potential has likely changed. Until you become familiar with your new finances, it is important to set a budget and stick to it. This way, you can account for your bills and start setting aside savings without allowing recreational spending to hurt your income.
- Revise insurance policies: These policies can easily get lost in the shuffle, but it is wise to carefully examine things like medical insurance, dental insurance, vision insurance, car insurance and any sort of homeowners policy to ensure they are correctly matched with the right people. If you have taken ownership of a vehicle, for example, it makes no sense to leave your spouse’s name on the insurance policy as a driver. Likewise, if you were listed on your spouse’s medical insurance policy, it might be time to get your own coverage.
A divorce can be both an exciting and stressful time. Preparing for your new, independent future can be a complex endeavor. By following the advice of your attorney, you can start this new chapter of your life ready for success.
