The decision to divorce your spouse can affect nearly every aspect of your life. As you prepare to proceed with the divorce process, you may have concerns about your finances.
The U.S. Census Bureau states that in 2021, approximately 15% of adults in the U.S. lived alone, and many of these people were also financially independent. Although separating financially from your spouse can be a difficult process, there are steps you can take to make this part of your divorce go smoothly.
1. Close all joint accounts
Before you separate from your spouse, close any joint checking, savings, credit and investment accounts. By closing these accounts, you can prevent your spouse from using them to make charges you could later hold responsibility for.
2. Prepare a post-divorce budget
Think about what your income and expenses will look like after your divorce. Knowing what your post-divorce budget looks like can help you effectively negotiate a divorce settlement with your spouse.
3. Establish your own credit
Start building credit as soon as possible if you do not have a credit rating under your own name. You may want to get a credit card in your name and use it to build up your credit. Be wary of taking on additional debts to support your cost of living.
Refrain from making any large purchases or taking on significant amounts of debt during your divorce. As the divorce process moves forward, document any purchases you make so that you can support your financial claims if your divorce ends up going to court.