When you find yourself separating from your marital partner, there are many things to consider. It can be overwhelming. And while it is overwhelming, you need to remind yourself to think with your head and not your heart to make sound decisions about your finances that will span your lifetime.
Often when couples are divorcing, one partner may forgo their career to be a full-time parent while the other one works outside of the home. And when this happens, and divorce is the necessary solution, we often see that the person who remained at home during the marital courtship has little to nothing in the way of finances, retirement, job experience and more – this can be a steep hill to climb.
And when we see this, our clients will often ask for suggestions on how they can start over financially after their divorce is finalized. Here are a few suggestions we share with them:
- Start a new checking account in your name only
- Review your credit report and consider locking it
- Sign up for a credit card in your name only
- Work with a financial neutral or trusted advisor to help you understand your financial landscape once the divorce is finalized.
- While your divorce is being finalized, create a monthly budget and stick to it
- Honestly evaluate your current financial situation to determine if you are living above your means
- When possible, choose to eliminate debt first vs. purchasing things you do not need
When you are truthful to yourself about what your economic environment looks like by looking at the whole financial picture, you can better set yourself up for financial recovery.
A Better DivorceTM is an interdisciplinary group of professionals committed to non-court, non-confrontational solutions for family law matters.
Note: This information is general in nature and should not be construed as legal/financial/tax/or mental health advice. You should work with your attorney, financial, mental health or tax professional to determine what will work best for your situation.