Managing your finances is never easy, especially after a divorce. Besides the emotional turmoil caused by separating with a spouse, it might also cause manacles of financial hiccups.
Some people rely on professional assistance to avoid experiencing poor credit scores and enhance their financial performance. As you work on getting a post-divorce lawyer, the following tips can help you manage your financial sanity.
#1 Get Your Credit Reports
Normally, you are allowed to access two to three credit score reports each year. The reports reveal credit accounts available under your name only and those that you share with others. Once you have received your report, look out for:
Any newer accounts opened under your name
Any unexpected changes in your credit account. In case there are sudden changes, start finding out if there are cases of identity theft.
Your credit score might get hurt by your spouse or ex-spouse failing to settle their side of joint bills. You have to set strategies for dealing with such situations.
#2 Open New Accounts Under Your Name
This is a-must-do as you work on the financial settlement after divorce. If you do not have bank accounts and credit that are opened under your name, now is the time to create them. There is a need to avoid errors or confusion. Therefore, it is advisable to use different institutions other than the ones used by your spouse. Think about acquiring credit before divorcing, as this might let you get a higher credit limit. This will be done based on the joint, pre-divorce income.
#3 Hire a Divorce Financial Analyst
Try to talk to as many specialists as possible. These might include accountants, post-divorce lawyer, and financial planners. These experts can help you lay grounds for your financial health before and after divorce. Before you hire any of these experts, make sure to ascertain that they are certified in their fields. Let them tell you about their experience, training, and level of expertise. These experts might help you with:
- Locating assets, including hidden ones
- Ensuring accuracy in your family details, including financial information
- Preparing financial documents and ensuring they are ready on time
- Valuing or appraising assets
- Assessing and reporting possible financial consequences as a result of divorce
#4 Terminate Your Joint Credit Accounts
When you are done filing for divorce, it is advisable to stop accumulating debts under both your names. If you keep these accounts, you might end up causing more damage to your credit reports and credit score. The divorce process might just get complicated if these things happen, which is why you need to act fast.
#5 Create a Budget
You should know that you are moving from a two-income household to a single-income household, which is quite a transition. If you are not used to creating a budget, you might be compelled to start doing so because of the divorce.
In your budget, make sure to include everything, including your daily, monthly, and yearly expenses. You must also factor in long-term expenses such as tuition funds and retirement. These arrangements will make the process of healing yourself after the divorce smooth.
Divorce is something that you might never wish for, but it may happen to anyone. You need to see these divorce settlement examples in Australia so that you avoid suffering major challenges it might bring your way.
Take time and educate yourself properly as you work on healing yourself after divorce. If you are so torn that doing these things on your own is hard, it is okay to seek help from certified experts.
About the Author
Monica is a passionate content creator. Her interests including self-development, outdoor activities, fitness, technology, entrepreneurship and everything in between.