One of the most difficult decisions a person makes is the decision to get a divorce. And with decision comes many other decisions including child custody, child visitation, child support, spousal support and division of property. Without the guidance of a legal expert, the amount of decisions, especially when it comes to finances can feel insurmountable. We’ve created this list of helpful tips on how you can manage your finances while you are going through the divorce process.
Tip 1: Close all joint accounts
Whether it’s a joint checking account or a joint credit account, it’s important to close these accounts immediately. You do not want to be gaining income or racking up debt in both of your names while you are trying to split the assets equally.
Tip 2: Create a budget
A lot of the times in the event of a divorce, you are going from a two-income household to now just a single income household. By creating a budget, you will make sure that you do overspend on things that are not necessary and you will be able to afford your new lifestyle. The budget should include things like your monthly expenses, mortgage payments, car payments, retirement funds and tuition if applicable.
Tip 3: Find healthcare insurance
Especially if you are the spouse that is covered under your soon to be ex-spouse’s plan, the sooner you can get on your own health insurance the better. This will prevent a lapse in coverage and you can work the new expense into your budget.
Tip 4: Update your insurance policies and other estate planning documents
While we do not like to think about our own mortality, making sure your children are provided for in the future. It’s also important to make sure your power of attorney and health care proxy are updated to the correct person so you ex-spouse is not in charge.
Although this is just the small tip of the iceberg of everything you need to do during the divorce process, we hope that we can make your lives a little easier. If you are seeking a divorce attorney do not hesitate to contact us.