Financially Surviving a DivorceFebruary 5th, 2014 by The JetSetter Team | Comments Off on Financially Surviving a Divorce
Divorce has long been documented as one of the most stressful things that can happen to a person. Aside from learning how to live independently, moving, and recovering emotionally, you’re also faced with the reality of your finances, which are often shared. You may feel alone, overwhelmed, and ready to give up—but don’t. Your bank account, like you, is capable of surviving this trying time.
The first thing you’ll need to do is to gain financial independence (check out Jason Hartman’s Creating Wealth podcast) for your future. Insurance, investments, and retirement planning may have duties relegated to your ex-spouse. It may be useful to enlist the services of a financial planner to help you sort out your money and documents. Once you have a handle on the value of your assets, you’ll be better able to plan for your future and make investment decisions.
Next, you’ll want to check your credit report. If you’ve shared credit accounts with an ex, you might be surprised by how good (or bad) your credit history is. If you haven’t shared accounts but have jointly used an account in only your spouse’s name, you might have no credit history at all. Make sure you know what you’re looking at so you can act accordingly.
Now you’ll want to make a budget for a single person. This will be undoubtedly different from your married budget, and you might be surprised by the lifestyle changes you have to make. Sorting out and planning for a new budget will give you peace of mind and a bank account that is accurately padded in case times get tough. Your new lifestyle might allow for some savings too—maybe your new place is small enough to scrap the maid service or maybe you can bike to work.
Similarly, you may want to reevaluate your savings account. You’ll probably be experiencing some emotional instability, and being able to see your savings grow will certainly make you feel better. You may add to it by selling things you no longer have use for—furniture, expensive cars, etc. You may also be able to sell your wedding ring, albeit for a lesser price.
Finally, you’ll want to establish complete financial independence. If you’ve previously shared accounts with your former partner, it’s time to open your own accounts. Get car titles transferred, and update your insurance and registration.
Remain optimistic—a positive attitude will get you a long way! (http://www.flickr.com/photos/lendingmemo/11745961655/)
* Read more from Jetsetter
The Jetsetter Show Team