Divorce implicates far more than splitting with your former spouse. It implicates asset division, shared parenting time with children, retirement, and even financial difficulty. Unfortunately, many people who divorce go through other forms of financial turmoil. It is an unfortunate side-effect of divorce. Here are seven tips to help you through any financial issues after a recent divorce.
First, depending on your situation, it may make sense to apply for a new credit card. This can be especially important if you do not have a large reserve of cash and marginal credit. But these are short-term fixes and for emergencies only, you can’t rely on them for all expenses.
Second, speak to your insurance broker. If you have homeowner’s insurance, you will want to go over the assets that are covered by the policy and remove those that were sold or given to your spouse. You need to get a handle on your finances as soon as possible and this is an easy way to lose money.
Third, if you were not the spouse that handled the investments, then begin educating yourself as soon as possible. It is imperative that you understand your various stocks, bonds, and mutual funds.
Fourth, make sure you re-title all of your assets.
Fifth, come up with a new way to run your life. This may mean changing your will or filing system. Regardless, it is a good cleansing routine.
Sixth, consider selling some valuables. Most people are cash-poor after a divorce. Getting rid of some items could help separate you emotionally from your spouse and get you some quick cash while you settle into your new life.
Finally, consider moving out of your house. Leaving the family home entails more than financial decisions but keep in mind that homes are not very liquid and they can be very expensive.
If you are experiencing financial difficulties after a divorce then you may want to speak to your family law attorney. Your attorney will be able to refer to someone who may be able to assist you. It could be a bankruptcy attorney or perhaps an attorney to re-write your will. Don’t be afraid to ask your attorney for help on more than your divorce, your attorney can be a resource to help you in many other avenues.