Money Tips: Five Financial Steps to Take Post Divorce
Saturday, October 12, 2013, 1:00 AM | Leave Comment
There is nothing easy about divorce. Once you decide that divorce is inevitable, you have to go through a long process of making the divorce legal and separating your assets. With the dissolution of marriage comes change, and one of the biggest changes you must prepare for is living off of a single income.
After everything is said and done and the divorce has been finalized, there are financial steps you need to take as a newly single individual.
Here’s a list of 5 steps everyone should take for financial stability post divorce:
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Get Individual Accounts
In most cases, branding off and applying for your own individual bank and savings accounts could be much easier if you already have a joint account. If you want to refinance your auto loan in only your name, staying loyal to your current credit union or bank is the best way to get low interest rates. Apply for your own accounts before your divorce is final if at all possible, and have your income deposited into your own account. This is the first step to separating your finances.
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Create Your Own Budget
Divorce changes your budgetary restrictions, and you must be prepared to pay all of your expenses. Creating your budget that accounts for your change of income and your change in monthly expenses is the best way to keep tabs on your money. If you are going to be ordered to pay alimony or child support, the funds should be allocated as an expense. If your household income is going to go down dramatically, but your living expenses are going down too, put this in your personal budget.
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Set Aside Time to Review Your Will
In most cases, a married couple will leave their assets to their spouse if they pass away. After your divorce, you need to update your will and choose beneficiaries that you truly want to have your assets. Your will should reflect your status as a single individual, and changing your will is imperative for the future.
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Get Tax Advice
Divorces often have financial consequences, especially when your taxes are concerned. If you have been using an accountant for years as a married couple, you may want to meet with the tax professional to discuss what type of financial obligations you will be taking on. Getting tax advice is a great way to get divorce help and minimize your financial obligations.
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Review Your Credit Report
Your credit score is very important, especially when you’re going to start building your credit as a single person. Order your credit reports, review your accounts, and check for errors. Make sure the reports are accurate after the divorce is final and have errors fixed if necessary.
Taking each of these financial steps is imperative. Take it from divorcees who have survived a divorce both emotionally and financially, and find a way to become your own person. Prepare yourself for a new life and for success after a divorce.
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