Financial issues to consider when getting a divorce

February 06, 2013

Financial issues to consider when getting a divorce

If you are going through a divorce, you know that your whole financial life is about to change. But if you prepare for it, the transition does not have to be difficult. The following tips can help you deal with your money matters as you are dissolving your marriage.

Make an assessment about what you have

To assess your financial condition, it is best to make a list of what you have, as well is what you owe. Make a list of your shared properties, investments and retirement funds , so you can give a detailed statement to the judge handling your case.

Take steps to protect your credit history

If you have joint loans, bank accounts or credit cards with your ex-spouse, it is wise to close those accounts immediately and start accounts in your own names. Even though a judge will assign these debts to one or both spouses in the divorce settlement, if your ex does not pay his or her share of the joint debt, you will be responsible for it. If you are concerned about your ex not paying the bills, you can make arrangements with your creditor to get notification about late payments to keep abreast of the situation.

Make a budget

Finances change dramatically after a divorce, so you need to make a budget that takes into account the expenses you will have after your marriage is over. You may need to consider downsizing your house, buying a more economical car and trimming little extras like premium cable packages from your budget because you will not have two incomes to rely on to pay for them anymore. Also, do not forget to consider how much it actually costs to get the divorce -- even if you do not have a complicated, lengthy legal battle ahead of you, divorce does cost money.

Update your paperwork

In some cases, updating legal documents falls through the cracks when dealing with a divorce. But it is important to remember to change the beneficiaries on your will, retirement savings accounts and life insurance policies. And if you took your spouse's name and want to change it, don't forget to update your license, Social Security card and passport.

Know what you need for childcare

Whether you will receive child support or pay it, you must know your children's annual expenses, and ensure that those expenditures are included in your monthly budget.

Get legal assistance

Financial matters can get complicated when you are going through a divorce. If you need help navigating through these complex issues, contact a family law attorney who can help you with your money matters.

Article provided by Law Offices of Dorie A. Rogers
Visit us at http://www.drfamilylaw.com/