If financial stress played a role in your divorce, it is essential to ensure that the divorce process does not exacerbate your financial problems.
While divorce does not magically wipe your debts, it does allow you to start anew and tackle existing debts your way. Here are some steps to take:
- If you have joint bills or loans, split them into two parts: That way, if your ex does not keep up with their payments, it is not your problem. There are plenty of refinancing options to put your chunk of the debt in your name.
- Close shared bank accounts or credit cards: When you and your spouse go your separate ways, you need to do so financially too.
- Slash your spending: While it may be tempting to max out your cards on an around-the-world trip to celebrate being single again, this is not going to help you long-term. Reducing from two incomes to one is hard, so you need to shore up your finances to give you a sound footing for your new life.
- Contest any extravagant spending on your joint account or card: Check for any unusual expense recently. If your husband took revenge on you by taking his friends to Vegas for the weekend on your joint card, you could point this out to the judge in your divorce hearing. The judge may determine it is not your responsibility and compensate you for this extravagance when dividing assets.
Avoid litigation where possible: A lengthy court battle can make your financial situation worse. Choosing a collaborative divorce can reduce costs and save time.