After a few recent conversations with your current spouse, you know divorce looms on the horizon. Rather than wait for the inevitable, you want to get proactive about your financial health.
U.S. News & World Report offers pre-divorce financial insights. Get a head start on divorce’s monetary challenges.
Get your house in order
Make a list of your and your spouse’s shared and separate bank accounts. You may need to copy account statements and tax returns. Once you file for divorce, figure out which accounts you may draw from without worry. Depending on how much you know about your soon-to-be-former spouse’s finances, you could need to do some digging to find hidden assets.
Consider your financial commitments
Do you and your current partner have money tied up in anything right now? If so, get professional financial advice about how that affects your divorce. During the legal proceedings, try not to make any major money moves, such as buying a business or a house.
Make a plan for Social Security
Did you and your soon-to-be-ex remain married for at least a decade? If so, you may receive Social Security benefits from her or his record. If the two of you are not quite at the 10-year mark, consider putting off finalizing the divorce. This money move does not harm your partner’s ability to receive Social Security.
Get a credit card
If you expect to struggle to support yourself on your income alone, apply for a credit card in your name ASAP. After finalizing your divorce, you could have trouble receiving approval for a credit card. Only use the credit card as a last resort, as you do not want to risk amassing debt during divorce.
You deserve to know how to navigate finances before, during and after divorce. The right knowledge lets you make well-informed decisions.