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Financial steps to take after divorce

On Behalf of | Oct 11, 2021 | Divorce |

Now that you have finally resolved your divorce or dissolution, you may be eager to put the past behind you and focus on the future. While this may be a goal to look forward to, there are still things you should consider in order to look after your finances. The cost of a divorce can be several thousand dollars, so it is important to protect the assets you have left. While marital dissolution can cost less, it is still important to consider your future finances. Knowing how you can protect yourself after a divorce can put you in a better position to move into the future, so here are a few tips you can follow for your own benefit:

Close any shared bank accounts

Any account that has your ex’s name on it means that they have access to any money inside the account. If you cannot close an account until you pay off any remaining debt, like a credit card, instruct the creditor not to allow any future charges to the account.

Update your beneficiaries

After a divorce, you may not want your former spouse to be the sole beneficiary of your insurance and retirement accounts. Go through your estate plan and ensure that it reflects your new preferences following your divorce.

Verify your credit score

The expenses of a divorce can have a negative impact on your credit score. It is also possible that your ex-spouse did unnoticed damage to your score while they still had access to joint accounts. By confirming your score value, you can properly plan for matters involving home loans and insurance.

Retitle your assets

If property division in your divorce granted you sole ownership of assets like your home, car or family boat, make sure the title is solely in your name. If your ex still has their name on the property, they may try and use the asset or even sell it.

Review your finances

Your new life on a single income (plus possible alimony or child support) means that you may not be able to afford the same lifestyle you had while married. Additionally, new expenses like rent and car loans may account for more of your monthly income. Review your finances to ensure your income is higher than your expenses and that you are in a stable financial position.

By taking a few extra measures after your divorce, you can protect your best interests and your finances with the same measures. You can also consult with a divorce attorney for additional advice on how you can protect yourself.

 

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