If you have decided to end your marriage, your life may suddenly look differently than it did before. One of the major changes you may experience during your divorce is an alteration in your financial situation.
After your divorce, you may need to get used to living on a single income or in different financial circumstances than what you are familiar with. To help you maintain your quality of living post-divorce, there are steps you should take to protect your finances during the divorce process.
Understand your financial situation
While the divorce rate in the U.S. in 2019 hit a 50-year low, many people still get divorced and have to reassess their financial situation. Begin by gathering all your financial documents, including bank statements, tax returns and investment accounts. Having a clear understanding of your assets, debts and expenses is the first step towards making informed decisions.
Create a budget
Develop a comprehensive budget that outlines your monthly expenses and income. This will help you identify areas where you can cut costs and ensure that you can maintain your financial stability post-divorce.
Protect your credit
Monitor your credit report regularly to ensure that there are no unauthorized or inaccurate transactions. Close joint credit accounts if possible and establish individual credit in your name.
Secure your assets
Ensure that your valuable assets, such as jewelry, important documents or family heirlooms, are in a safe place. This will prevent any disputes over these assets during the divorce process.
Update your beneficiaries
Review and update the beneficiaries on your life insurance policies, retirement accounts and any other financial instruments. Make sure your designations align with your current wishes.
Divorce can be emotionally taxing, which can cloud your judgment. Seek emotional support from friends, family or a therapist to help you make sound financial d