Going through a divorce is one of the most difficult things that a person can experience. The emotional weight is huge and the life that you knew for so long is gone in an instant. You’re probably struggling to work out what to do next and your finances aren’t top of your priorities. While you’ve got a lot of other things to worry about, if you don’t keep a handle on your finances, you could end up piling more problems on. Here are the main things that you need to consider.
Unless you’re a financial expert, you’re going to need advice. Now is not the time to making bad decisions because you’ll have the extra financial burden of divorce proceedings to deal with. Even though you probably won’t be thinking straight at this point in time, you need to get advice from a professional immediately. If you wait until proceedings have already started, it might already be too late.
If you or your spouse have a bad credit rating, then you could end up damaging one another financially. As soon as you decide to divorce, close any joint accounts and open new ones in your own name. By completely separating your money from one another, you avoid having a negative effect on each other’s credit ratings. It also protects you from a spouse that might deliberately try to harm your financial credentials. If you’re the one that is in trouble, you’ll probably have to get loans for bad credit in order to pay for the divorce fees. If you are still using joint accounts then your spouse will have access to this money and if they are feeling vindictive, they could take it from you. This will leave you in a pretty terrible situation.
Review Your Assets
Knowing exactly what you own is vital. If there is any confusion, it could cause a lot of complications once proceedings are underway. Your spouse will be able to argue that they own some of that property and you could end up losing. Make a list of everything that you own personally and everything that you own together. You may need to hire a legal professional to be a go-between because these situations can get nasty if there are disagreements about who owns what.
When children are involved in a divorce, they should always be your primary concern. Where finances are concerned, the same thing applies. You and your spouse should agree that making sure they are financially stable is the most important thing. When you’re reviewing your finances, decide how much you can afford to put aside for your children’s education and anything else they might need and put it aside before you start arguing about the rest of it. You can get your lawyers to argue about the separation of the rest of it afterwards but don’t let your kids lose out.
Set Up A New Budget
Your budget is going to be very different to what it used to be. Chances are, you don’t actually know how much money you were spending on your own. Get hold of some old bank statements and credit card bills and add up what was your spending, and what was your spouse’s. Once you’ve drawn it up, you should have an idea of how much money you need.