Financial Planning Tips After Divorce

 Posted on December 00, 0000 in Divorce Finances

When you hear people talking about divorce, they are probably talking about one of three things: how it affects you emotionally, how it affects your children, or how financially debilitating it can be. Marital life typically means that all of your finances and assets are entwined with each other, making it a difficult and stressful time for you when you go to separate them. Divorce can leave you with a sad bank account, a less-than-favorable credit score and thoughts about how you will pay bills alone. Although these issues can weigh on you, there are things you can do to help yourself after your divorce.

Educate Yourself

Before you begin creating a plan of attack for your finances, you have to know what you are working with. One of the first things you need to do is to take stock of all of your assets and debts and determine what is now yours. Divorce means you will be splitting all of these things, though not necessarily equally, but equitably. Figure out what you are working with and then go from there.

Create a Budget

Next, create a budget of what you need to spend and save each month. List out all of your monthly expenses such as rent, health insurance, utilities, credit card payments or other bills. Then figure out how much you can afford to save each month. Even a little bit at a time can add up eventually. Creating a budget can help you get into the swing of managing your finances after your divorce.

Cancel Your Joint Bank Accounts

Though this might be self-explanatory, you need to immediately cancel any and all of your joint bank accounts that you have with your spouse. Once you have begun the divorce process, having any joint accounts open can become a big liability very quickly. If your ex happens to run up big bills on credit accounts and your name is still on them, you will also be liable for paying those debts.

Get a New Credit Card

Opening a credit card with just your name on the account is a good way to begin rebuilding your credit. Start by spending a small amount each month, such as money for gas, but make sure you have the money to pay the bill off each month. Balances that sit on your credit card are not good for your credit score.

Contact an Illinois Divorce Attorney

While you may be panicking now, you should take a deep breath and know that everything is going to be okay. An experienced Aurora divorce attorney can help you make the right financial decisions when it comes to dividing you and your ex’s assets and debts. Contact the Law Office of Matthew M. Williams, P.C. to determine your best plan of action. To set up a consultation, call the office at 630-409-8184.

Sources:

https://www.pacificawealth.com/21-divorce-financial-tips-must-divorce/

https://www.entrepreneur.com/article/307592

https://www.huffpost.com/entry/7-financial-management-tips-for-anyone-who-just-went-through-a-divorce_b_10373494