Divorce can impact your life significantly in a number of ways. One of the ways ending your marriage can affect your life is on a financial level, especially if your household relied on one income.
The process of separating your finances from your spouse’s during divorce can be a complicated affair. But following through on certain simple actions can help you protect your finances and move forward after you finalize your divorce.
1. Close joint accounts
If you and your spouse share investment, banking or savings accounts, change these arrangements. It may be easiest to close these accounts and open new ones in just your name, if possible.
2. Track your spending
You will need to know how much money you spend, so you can prepare financially for post-divorce life. Create a budget to identify how your divorce will impact your finances. Consider factors like whether you will be staying in the family home, incurring new childcare expenses or shopping for a new healthcare plan.
3. Keep an eye on your credit
According to Experian, consumer debt grew to nearly $14.9 billion in 2020, and you and your spouse may continue to acquire debt during your divorce. If you hold any joint accounts with your spouse, watch for any unfamiliar expenses that show up on your credit report during divorce proceedings.
You should also update the passwords on all your accounts containing financial information. This will prevent your spouse from misusing them during your divorce and help your finances stay on track.