Divorce can incite big changes in your life. One of the ways divorce can impact your way of living is on a financial level, especially if your spouse supported your family financially.
According to the Centers for Disease Control and Prevention, in 2019, 746,971 couples in the U.S. got a divorce or annulment, and many of these individuals had to figure out to move forward financially. You can start by taking certain steps to protect yourself financially at this time.
Open new accounts
You and your spouse may have shared your finances during your marriage. Once you decide to get divorced, close all joint accounts and open separate checking and savings accounts in your name only.
Make a list of your debts and assets
Figure out how much money you and your spouse have and where it goes. You should get copies of all tax returns, account statements, real estate deeds and other official records that reflect the total sum of your assets and your debts.
Work on your credit
You may have relied on your spouse’s credit rating during your marriage when purchasing real estate, vehicles or taking out loans. Start building your own credit when you decide to end your marriage by opening up credit accounts in your own name.
Relying on a single income after you finalize your divorce can present challenges and alter your current way of living. Figure out what your expenses will be following your divorce and how much income you will have to prepare for this new phase of your life.
