Deciding to end a marriage is a difficult time fraught with many emotions. The dissolution of a marriage is more than just the end of your marital partnership, it is most likely the end of your legal and financial partnership as well. Though one of the last things you want to think about is your finances, it’s something that can’t be ignored as divorce is a division of assets. If you’re facing divorce, make sure to prepare yourself and acquire the necessary information.
Before proceedings begin, make sure you’re financially ready.
Gather all your legal and financial documents and meet with a financial advisor or planner. Divorce disrupts many aspects of your life, but if you plan ahead, it doesn’t have to disrupt your financial security. Assess your individual debt and establish credit in your own name.
Separate your financial interests.
If you have joint accounts with your spouse, now is the time to discuss closing them. Any outstanding balances (like credit cards) should be paid. Still, a divorce decree doesn’t dissolve financial obligations such as joint debt, so ensure that all shared accounts and debts are handled properly. Insurance policies will also need to be reviewed and amended so that neither person is without proper coverage after the proceedings.
Begin your new financial life.
Once your divorce is final, there will be several details to get in order. These include: securing a copy of the divorce decree; updating names and addresses on critical documents; possibly changing your legal name; and updating all employment and tax records. Though they may be tedious and frustrating, these details will get you on track, enabling you to adjust to your new way of life.