I've Gotten Divorced…Now What?
Divorce is one of the most emotionally and financially taxing events in life, but following these tips may help ease the financial pain.
Divorce impacts your emotions and can strain your personal finances. Depending on your situation, these tips may be able to ease the financial fallout.
Keep Your Cool.
Divorce is one of the most emotionally stressing life changes. You may not make the best money decisions when you're emotional. If necessary, get a professional to mediate any disputes.
Scope out Your Situation.
Find out how much you own, how much you make, how much you owe, and how much you spend. Ask yourself these questions:
· What are some unimportant things that I could cut back on or get rid of, if necessary?
· What are some things I could sell for extra money?
· Could I consolidate my debts to save money?
· If I get the house, could I refinance my mortgage to save money?
· What are some other ways that I could increase my income and cut costs?
Separate Yourself Financially.
Make sure to close any joint bank or credit accounts and open accounts in your own name. If you and your ex-spouse had any joint debts, decide how to handle them. Also, if you have changed your name, make sure to let your banks, creditors, and other legal and financial professionals know.
Establish Credit In Your Own Name.
If you haven't applied for credit in your own name, you may need to build a new credit history in your own name. Applying for a credit card or small personal loan are a couple of ways to build your own credit history.
Talk to Your Creditors.
If you anticipate problems with paying bills, talk to your creditors as soon as you think you may fall behind on your bills. Your creditors want to help you protect your credit and work with you to help you keep up with your bills, but only if you talk to them right away. The longer you wait to talk to your creditors, the fewer options you have for protecting your credit.
Prioritize Your Bills.
Food, clothing, shelter, and medical care are your most important bills. Paying for those things is the most important. Some bills may need to be paid right away; others may be able to wait. Some bills may need to be paid in full; others may not need to be paid in full.
Get Your Debt Under Control.
If you want to manage your debt, a debt consolidation loan may be able to help you lower your total debt payments and free up extra money.
For more information about debt consolidation, visit our Debt Consolidation page.
Consider Refinancing.
If you received the house, now may be the time to refinance your home. Refinancing your home may help you lower your interest rate or monthly payment.
Visit our Mortgage Refinancing page to learn more about refinancing.
Get Help.
Financial counseling can help you both now and in the future. Financial counseling can help you work with your creditors, make a budget and follow it, and find out about any special programs that you may be eligible for.
Protect Yourself.
Make sure that you get any promises or details about any financial transactions in writing, read everything carefully before you sign it, and ask a legal or financial expert to help you understand anything that isn't clear. Avoid signing anything that you don't understand or that seems too good to be true or too easy to do.
Related Articles
A Loved One Has Died…Now What?
I'm Married…Now What?
I'm Moving…Now What?
I've Graduated…Now What?
I've Lost My Job…Now What?
I've Gotten Sick or Hurt…Now What?
These are general recommendations not applicable to all financial situations. Every financial situation is unique. Further, the suggestions and recommendations contained within the content provided are not an assurance of any future result. Be sure to discuss your specific financial circumstances with a legal or financial expert. Contact us for more information.
