Find out how to improve your financial situation with these five useful tips, which will help you get by financially while you’re going through diovrce.
1. Consult with a divorce financial planner to have your financial status evaluated, and to establish a budget based on your situation and expected cost of divorce. Consulting with a divorce financial planner will not only bring clarity to your financial situation, but it will also help you prepare and be more financially grounded in your pre- and post-divorce life.
2. Separate all your monetary assets such as joint bank accounts and try to develop a plan with your spouse to pay off any debts together before you both get heavily involved in the divorce proceedings. You should also look into all savings accounts, cash or emergency funds that are solely in your name, and make note of the overall status of your savings.
3. Inform creditors or financial institutions to close (or suspend, if you’re not able to pay them off at this time) all joint credit cards or revolving loan accounts by sending a written letter via courier or registered mail. Although this may not fully protect you from having to pay debts incurred by your spouse while you were married, it requires creditors to stop allowing new charges on the accounts. Establish your own individual credit, which will help keep your credit in good standing until you are officially divorced. Any joint debts will need to be divided in the settlement agreement – however, be aware that the terms of the agreement won’t prevent creditors from coming after you if your ex fails to make payments on those debts. Speak with a lawyer and/or divorce financial professional about strategies for protecting yourself from your ex’s liabilities.
4. Live within your means and do what you can to stretch your available money. You may have to make adjustments to your lifestyle during – and likely after – your divorce. If you find it difficult to cut costs, ask a financially-savvy friend or your financial professional for help separating necessities from luxuries. This can reduce your debt load substantially – which will help reduce your stress during divorce.
5. Increase your income if you don’t have enough money to meet your needs. Although this may seem daunting, there are other options aside from getting a second job or increasing your hours at work. You may need to go back to school to qualify for a higher-paying job. Think about ways you could make your passion or hobby work for you. For instance, you could sell craft projects on Etsy, or start a dog-walking service, or provide child-care for local parents in your home. Think of this as an opportunity to develop your talents while generating extra income.
For more information about improving your financial situation during divorce, please go to: www.divorcemag.com/divorce-financial-planning
