Charlotte Divorce Lawyer Blog
Tips for Handling Finances After Divorce
Divorce can take a toll on your emotions, but it can also cause financial stress. When a couple ends their marriage they both have to re-think their economic matters and make decisions that will take them in new directions. As you go through separation and divorce, you will want to begin to take steps to secure your financial future apart from your spouse.
Properly Assess Debts
During the divorce process you are likely focused on fairly dividing your assets. However, you may not take as much time evaluating your debts. This can lead to problems later, after the divorce is finalized. Debts that you incurred while married are marital debts and both of you share them. Be sure to clearly outline debt resolution as part of the divorce. If debts become disputes later, it is helpful to seek guidance to learn the best way to resolve the issue.
Create a Budget
One of the best things you can do to monitor and improve your finances is to create a budget and stick to it. It is essential to get a handle on your income and expenses so you make sure you can live comfortably. A budget forces you to review your finances and allows you to make adjustments so you can prevent difficulties before they occur. You will also want to include a strategy for saving money for both short-term and long-term needs and wants.
Review Your Credit Score
One of the first things you will want to do as you separate and divorce is to review your credit history and score. Evaluate the items that are listed so you can address any questions prior to the finalization of your divorce. Request a copy of your credit report from each of the bureaus. Review the reports carefully to find any errors or problems. If you find discrepancies you can work to resolve them as quickly as possible. Review your credit report often to ensure accuracy and monitor your score.
Resolve Credit Card Matters
Take steps to protect your credit score. If you have joint credit accounts you will need to close them and open new accounts in your name alone. Evaluate your credit needs before getting new accounts. Your credit score could likely go down a bit as you establish new credit in your own name. Make sure that you can afford monthly payments. Do not take on more debt than you can afford. If you have too much debt you will want to take steps to pay it down. After your divorce, you may need to seek professional guidance from a financial planning specialist to assist with your ongoing needs.
Many couples disagree about finances during a divorce. A knowledgeable divorce attorney will help you through financial matters and ensure that you split your assets and debt properly. To request a consultation, contact our legal team at Arnold & Smith, PLLC, at (704) 370-2828 today.
The family law practice group at Arnold & Smith, PLLC includes two Board-Certified Family Law specialists and one Child Welfare Law specialist, as well as several attorneys with many years of family law experience that are committed to providing a powerful voice to individuals facing the often-tumultuous issues in this area of law. The range of issues our family law clients may be facing include pre- and post-nuptial agreements; separation agreements; post-separation support; child support (both temporary and permanent); absolute divorce; divorce from bed and board; military divorce; equitable distribution of assets; child custody (both temporary and permanent); retirement benefits and divorce; alimony and spousal support; adoption; and emancipation. Because this area of the law is usually emotionally charged and complicated, the family law attorneys at Arnold & Smith, PLLC act with the utmost dedication to ensure that each client understands his or her options, and then act to achieve the best result possible for that client’s particular situation.
Source:
https://consumer.gov/your-money/making-budget
https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-score-en-315/
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