Financial steps to take while going through a divorce

On Behalf of | Mar 14, 2023 | Family Law

Divorce often takes a severe emotional toll on the family. Part of the strain results from the impact that separation has on your finances.

Unsurprisingly, money problems are one of the top five reasons for divorce, and while separation can eliminate some issues, other challenges await. You can take the following steps to ease the transition financially.

Organize financial records

A split requires a division of assets and liabilities. Understanding your contribution can remove many doubts as to what your fair share should be. Tax returns, bank statements and loan information will be vital and can help you prepare a budget for your life after divorce.

Open a P.O. box

If a split is going to be contentious, receiving your mail in a different location ensures you do not miss any essential communications. You can accept communications about your new accounts at the address and maintain privacy.

Create accounts in your name

If you have joint accounts, you should create banking and credit cards in your name only. You may consider going to a separate financial institution to avoid confusion. That way, you will not accidentally use the old account and can keep straight how you want to handle transactions in the future.

Update your estate plans

Everyone should have a will to protect their estate. Updating your documents prevents your ex from getting your assets if a sudden accident happens. You may also have to update powers of attorney and beneficiaries on insurance policies. If you do not have these documents, you can use this life change to start making your plans.

Divorce will have a financial impact, but you can minimize your burden with some forethought.