Divorce will change your life in many ways, with it having a major impact on your finances. Even though you have a lot on your plate, it’s critical that you take the steps necessary to protect your finances during this very difficult time.
Here are three things you should do:
- Cancel all joint credit cards: Before doing so, talk to your soon-to-be ex-spouse about how to best manage any remaining balances. For example, you may agree to pay off the balances with money from your savings account or cash on hand.
- Create a property and debt division checklist: This will help you understand the assets and debts that may be subject to division in divorce. In addition to a comprehensive list, make note of which assets and debts are joint and separate.
- Create a post-divorce budget: Your divorce will eventually be in the past, and at that point you’re left to manage your money on your own. The sooner you create a budget, the sooner you’ll understand your income and monthly expenses. This may lead you to make changes that allow you to better manage your money in the future.
These are just a few of the many things you can do to protect your finances if your spouse asks for a divorce. While doing these things, closely watch to ensure that your spouse isn’t attempting to hide assets from the court.
Divorce will challenge you in many ways, but there’s nothing you can’t handle when you know what to expect and how to protect your legal rights.