Usually the biggest issues couples tackle in a divorce are the division of assets and time with children. However, what affects both of those is finances.
Divorce is a costly endeavor, and the steps you take beforehand can influence your financial stability afterward. Follow these tips to manage your money now.
Put away the credit card
While you are still married, you may not think twice about making big purchases. However, there is no guarantee those items will remain your property in the divorce settlement. Also, if you are trying to spend money to hide assets, this can get you into legal trouble. Only buy your daily needs until after the divorce is final.
Separate your finances
Separating your financial portfolio before a divorce can make asset division less complicated and the transition to singlehood smoother. This entails:
- Opening a personal bank account, if you do not already have one
- Gathering and making copies of records for other accounts, investments and tax returns
- Separating bills, credit cards, loans, memberships and any other joint accounts
- Getting your own insurance policies to prevent gaps in coverage
Evaluate your employment
If you are not the main breadwinner, then you may have to get a new or second job. You need to make enough to support yourself and your children. You cannot solely rely on spousal and child support, as you may not get as much as you expect or your ex may not pay in full or on time. If you are not in the workforce, consider applying for jobs, going back to school or getting on financial assistance.
If you are the main breadwinner, check that you can support yourself and pay any court-ordered alimony or child support with your current income. If a new job is not plausible, talk to your boss about increased hours or wages. Always keep in mind that divorce affects your financial state just as much as your ex’s.