A divorce is financially straining on both parties. You will be taking one household and dividing it into two. If you and your spouse do not remain in your home during the divorce, there will be additional expenses for rent and utilities. There will also be several court expenses.
Fortunately, there are steps you can take beforehand to lessen the financial blow of divorce.
#1: Cancel All Jointly-Owned Credit Cards
Even if a judge rules that you aren’t responsible for the charges your spouse made after you two separated, the credit card company can hold you responsible for the amount and diminish your credit score while you and your ex are sorting it out.
#2: Anticipate Expenses for the Upcoming Year
Consider using jointly-owned funds for the following things:
- Vehicle repairs and maintenance;
- Clothes for yourself and children;
- Fees for your own post office box;
- Medical or dental procedures for yourself or children;
- Vet visits for your pets;
- Holiday and birthday gifts for your children;
- Private school tuition for your children;
- Extracurricular fees, such as those for sports uniforms; and
- Any other expense that may arise in the next year.
If you’re contemplating a return to school, go ahead and apply and enroll before separating. Judges tend to enforce the status quo, so you are more likely to have the financial means to finish school if you started prior to the separation.
#3: Open a Bank Account in Your Own Name and Accumulate Money
Eventually, you will be required to disclose these funds to your spouse, but it can help you make it through the divorce.
If you need quick access to funds, consider borrowing funds from your parents, your 401K or a basic credit union loan. At all costs, avoid charging a large amount onto high-interest credit cards.
#4: Gather all Your Financial Records and Make Your Own Copies
During the divorce, these documents will be essential to your case, and if your attorney has to subpoena them, it will cost you money.
Financial records include documents like loan applications, tax returns, wills, trusts, deeds to houses and other property, car registration, insurance inventories, credit card statements, insurance policies, any statements reflecting debt, and anything that shows property you inherited.
#5: Know Your Financial Picture & Find an Attorney You Can Afford
When consulting with an attorney, ask if he or she offers payment plans. Ask your friends and family in the area about how much their divorce costs.
Although no two cases are alike, you will know a range of how much legal services may cost you.
#6: Inform Utility and Cable Companies of Your Separation
Request that both parties sign to have utilities disconnected. This will prevent your spouse from turning off your utilities on his or her own.
If the utilities are disconnected, you will have to pay a fee to re-connect services.
Stay tuned for our next blog post on how to avoid going broke DURING your divorce. If you have any questions, feel free to contact us using the form submission or call us directly to set up a consultation.
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