Saturday, April 30, 2016, AM | Leave Comment
Divorce is an emotionally traumatic event for most people, but they soon find out the financial aspect before, during and after a divorce may be a nightmare come true.
Divorce is known to be worse on a person’s finances than any recession. In fact, some people never recover.
Fortunately, there are things to help people going through the terrible process to make it out alive financially. It is amazing how many resources there are out there to help keep you on top of your money.
Here are five tips on how to stay financially stable during a divorce.
Monitor the Credit Report
Keeping a mindful eye on any new lines of credit being opened up in a couple’s names when they are single is a good idea. This happens more frequently than people think. This is supposed to be a good time to start establishing new credit because of being single.
Start Establishing Personal Credit
Applying for a new credit card and beginning to establish good, single credit is an important present and future step. This way you can start preparing yourself right away for a bigger and brighter future. This can help you be able to get a home and certain loans that you may need down the road.
A good idea is to always buy your gas with your credit card. That is just a small and easy way to start building credit.
Make No Emotionally Based or Major Financial Decisions
It is a good idea to wait awhile before making any major money decisions. The waiting period should last during the divorce and after. Anything can happen in court, and on top of that, a lot of people just are not in the right frame of mind to make important decisions with money.
Making the wrong financial decision based on emotions can ruin a person for good. That is just one reason why it is so important for you to have a budget that you stick to. It’s okay to spend some money on yourself just for fun sometimes, but you have to make sure that you can afford it first.
Make a Budget for the Single Life
Couples have household budgets when they are married, and single people who are smart with money have budgets when they are single. When a person becomes single again, then it is time to form a new budget.
It is a good idea to set your budget in an excel doc so that you can clearly and easily analyze your financial situation every month. There are also a lot of apps out there that can help you manage your finances in a way that is best for you.
It Takes a Team to Win This Battle
The ideal team to form during a divorce to preserve sanity and money is the best lawyer available, someone in mental health and a financial advisor. They will all help with saving money. It is a good idea to contact your lawyer as soon as possible to get more information on what needs to be done.
For example you can get plenty of help from Summerville divorce information from the Peck Law Firm.
There are no guarantees for financial stability during or after a divorce. These are tips, and they are good tips, but divorce is an unpredictable battle. The first tip is the best bet to surviving towards the end with sanity and money intact.
Always do additional research, and listen to the advisement team. Emotions run high during these things, and people tend to bleed money when they get emotional. Make a financial plan and stick to it no matter what.Facebook.com/doable.finance