4 Tips for Financial Independence During Divorce
A divorce can prove to be a tremendous financial burden. Many find it difficult to manage the cost of mediators, separate living spaces, and other aspects of separation. If your divorce is occurring after several decades of marriage, you may have a harder time untangling your life from your spouse’s, especially when it comes to finances.
Whether you err more on the side of financial dependence or support in regards to your spouse, finding monetary independence is a vital part of separation. Re-gaining financial freedom can be hard, but these four tips will help you maintain fiscal stability during your tough transition.
Tip 1 – Freeze
If you and your spouse shared any credit cards or bank accounts, make sure to freeze them immediately. According to CBS MoneyWatch, quickly freezing shared accounts ensures that your ex-to-be can’t run up extra debt. However, make sure to discuss the freeze first, so no parties are left without cash. Afterward, separate credit cards are the way to go.
Tip 2 – Gather Your Belongings
Make sure to count up any of your remaining premarital savings or inheritances. Unfortunately, if you added these to a shared savings account with your spouse, they will probably end up being divided. However, if you can show that your money financed something like a family business or your spouse’s professional education, you may end up with a larger settlement.
Tip 3 – Remember the Two-Way Street
Try to avoid a heated divorce, if possible. Couples whose divorces roughly resemble battles will end up having more problems when dividing assets and reaching agreements. Although you may not want to, try to remain calm and reasonable during money conversations; if that sounds like too much of a challenge, seek out a mediator for help. Especially for those with children, remember that leaving your partner with an empty wallet is not in the family’s best interest. Both of you need stable, financially independent lives.
Tip 4 – Budget
If you know that a divorce is on the horizon, prepare yourself for potential expenses and changes. If your separation stems from a loss of romance, trust, or understanding, keeping your expenses organized will help the divorce pass without too many financial concerns. However, if you and your spouse are separating due to money problems, budgeting will help prepare you for an independent lifestyle. Fighting over funds or scrambling to claim extra cash will only raise tensions.
Before you get divorced, speak to a Certified Divorce Financial Analyst about moving forward and creating your post-divorce monthly budget.
To learn more about financial independence during a divorce, register for one of our monthly workshops.