Significant life events come along every once in a while. A lot of professionals offer the advice that any time one does come along, it should trigger action to make sure that the financial underpinnings of your life are properly maintained.
The last thing you need in the face of a life-changing event is to be unsure of where your next farthing may come from. This may be particularly true in the event of a divorce. One thing you can be certain of is that there is going to be a cost associated with the separation of your joint lives into two. Where children are in the picture, the issue of child support becomes a matter for cash-flow assessment.
The watchword that may be most appropriate in the context of assuring financial wellbeing through divorce may well be anticipation, and here are some thoughts from Credit.com about steps that might be helpful.
- Be proactive about separating finances. Once the decision to divorce has been made, it is time to create separate buckets for each spouse. Even if reconciliation remains a hope, it's better to avoid financial surprises by closing any jointly held accounts or lines of credit as soon as possible. It's not a bad idea to monitor your personal credit after separation to avoid the possibility of identity theft by your expected ex.
- Get educated. It may be that during your marriage, one or the other of you handled the money. Maybe you split the duties. Whatever the dynamic may have been, you need to take responsibility for all of your personal financial issues yourself now. Take action to discover what you may not know. Getting a high-level view of all debts and assets not only sets you up to take the reins, but it may be crucial to ensuring that debts and assets are subject to equitable division.
- Avoid being blinded by emotion. Divorce is emotionally trying. If you let emotions drive your actions it can result in higher anxiety and greater costs. Stay focused on stability and experts say you are more likely to make it through the hard times.
Source: Credit.com, "How to Protect Your Finances in a Divorce," AJ Smith, March 31, 2014