When a marriage ends, the subject of finances becomes more complex. No matter how long you were with your spouse, odds are that you combined accounts, made large purchases together and made other financial decisions as a couple. Now, you have to prepare to make financial moves on your own, explains U.S. News.
What financial steps should you take during your divorce?
Organize your financial portfolio
Before and during the divorce, make a list of you and your spouse’s accounts. If your spouse handled the finances before, you need to do some investigating to become knowledgeable on all your finances and accounts. You may want to get copies of tax returns and account statements. You may also want to consider Social Security benefits. A person can receive Social Security benefits if married for at least 10 years.
Budget your money
Some divorcees spend a lot of money in celebration during and after a divorce. While you can always treat yourself, you do need to come up with a budget for yourself now that you are alone. Plan to save money. Monitor all your expenses. Your budget may become more complex now that your household is separate.
Change documents and accounts
Once you finalize the divorce, it is time to make changes to your existing accounts. If you have to change your name, then you need to inform your employer, the SSA, your bank, insurance agencies and any other accounts that you have. You may also have to change aspects of your estate plan and alter the beneficiaries on your property titles and life insurance.