Tips For Handling Your Finances After Divorce

Divorce, Family Law, Mark Schondorf, Northbrook Attorney

Finances are tricky to handle after a divorce, especially since the divorce itself would have taken so much of an emotional and financial toll. But just as you can navigate a divorce with the right steps, you can be equipped to handle your finances once the separation is finalized.

Handling your finances after divorce can be challenging at first, but it can be a very manageable process if you have the right counsel and follow the right steps.

Below are some tips for handling your finances upon finalizing your divorce.

Get Organized

After divorce, it is important to organize your financial records, which include investment accounts, bank accounts, and tax reports. This will help you form a comprehensive picture of your finances and just how to manage them moving forward.

Outline a Budget

Creating a budget is the first step you must take once your divorce process reaches completion. This budget should include all your income and expenses and ensure that the expenses are within your current financial capabilities. A budget is a great way to get your finances in order and set up a new spending structure that suits your new life.

Negotiate and Divide Your Mutual Assets

The divorce would mean a separation of property during the marriage, which the court proceeding would have naturally split fairly between you. This includes marital property, inheritance (if necessary), and debts.

If any are left out of the divorce case, you and your ex-spouse would work together to liquidate and share the assets equally, so as to tie up any loose ends.

Consider Your Credit

A divorce can leave one partner shouldering mutually accumulated debt, which is very unfair. An increase in debt will affect your credit score. To protect it, you can take some steps. These steps include closing joint accounts and dividing mutually-accumulated debt equally. With the aid of the right attorney and financial planner, you will be able to navigate this.

Update Your Estate Plan

Now that you are no longer a part of a marriage, many changes must be made to your estate. These changes include your estate plan, will, power of attorney, and beneficiary designations.

All of these may have been different before the divorce and must now be updated to ensure everything is clear.

Seek Professional Help

The post divorce process can be daunting on all fronts, and doing this financial rejuvenation on your own may not be possible. This is perfectly normal; you can consider working with a financial advisor or your divorce attorney to navigate the divorce’s financial aspects properly. A great advisor would ensure that your rights and interests are adequately protected during and after the divorce.

Start Saving

A healthy saving habit is a good tool for any individual, more so for one going through a financially draining process such as divorce. You can save your way out of any long-term financial blockades even before you go to court or after; it is up to you. We recommend starting early and investing in long-term goals.

You need to understand that it can take a while before you can fully adjust to this new financial situation after divorce. But with the right counsel, careful planning, and healthy financial habits, you can take back control of your finances and chart a new future.

Do you need help navigating the financial aftermath of a divorce? We are here to help. Speak to an experienced attorney here.