Divorce is one of the most catastrophic events that a person could encounter in his/her life. Not only it scars a person emotionally but causes financial instability and makes a person completely feeble. Whatever the reason may be, but the feeling of getting separated from the person with whom you have spent so many years of your precious life is still completely horrible and stressful.
Well, this was all about the emotional trauma that you may experience due to divorce. But you should also know that divorce is not only emotionally upsetting but is financially too. First thing, you become from two source income to one source income and it becomes really difficult to manage all your expenses. And who can forget the child support and alimony payments, they comprise the major part of the financial expense in any divorce case.
Here, in this blog, we have prepared a list of useful tips and suggestions that can help you manage your finances during the time of divorce. So let us see them one by one.
Useful tips to manage your finance while going through a divorce
- Get rid of joint accounts ASAP
You and your partner decided to open a joint account so that you can manage expenses in a better way and save more collectively. But at this point, where you two are on the verge of getting separated from each other, it’s time to close this chapter too. Remove the name of your partner from any of the accounts that you hold including credit cards. Well, you don’t want your angry ex to use all your credit cards limit and put you under the burden of heavy debt.
- New life new account
Well, it would not be wise to connect such distressing phase of your life with finance. But, this is how our society plays by. Wherever you go, finance will always be there catching along. Now, it is time that you open new bank accounts that solely belongs to you and no one else. Also, make sure that this new bank account of yours is set up for bill payments so that any of your important bills are not left due.
- Time to change your status
Divorce brings plenty of changes in a person life. Now you will have to change your personal information like your surname (for females), marital status, and others on all your legal documents like income tax records, driver’s license, electricity bills, health insurances, post office records, and many others as soon as possible after the divorce is completed.
- Don’t spill the beans
Generally, during the time of divorce, where the temper of the people are really high and are emotionally disturbed, people end up babbling about this to everyone including the waitress of the coffee shop and grocery shop owner. Well, it is important for you to understand this that divorce is a confidential issue and should not be shared with anyone else as it contains financial issues as well. Anything is spread from mouth to mouth and your divorce issue will be among the hottest topic of the people around you. And you don’t want your old debt lenders to come knocking around the doors asking to complete their debt on the earliest.
- Prepare a budget
Now, you will be all on your own after the divorce and you will have to deal every financial matter all by yourself. Therefore, it is best advised that you come up with an effective budget that can help you be financially balanced during such an unpleasant situation. Include everything in your budget, from daily expenses to all the utility bills, rents, mortgages, as well as your long term expenses. Don’t forget the funding options available, as the marketplace has the variety of loan products for the borrowers. For example, you can apply for the text loans if you have any urgent financial need. Try to make a schedule of every expense and bill so that you will know what payments you have to make on the upcoming months.
Well, this was all the tips and tricks that you can use in order to give yourself a sense of financial relief during such an emotional and daunting time of your life.