Taking Control of Your Finances After a Divorce

Your finances will change after divorce. For a select few, their financial situation actually improves. If you were dragged down by a high-spending spouse or a spouse with tons of financial commitments that are no longer your responsibility, you may actually be surprised by how much you have on hand now. But for most people, their financial situation gets a little tighter after a divorce.

By focusing on your finances for a while after your split, you can put yourself in the best financial situation possible. Learn more about improving your financial situation after divorce, and if you’re looking for more personalized assistance through your divorce, call Nowell Law Firm at 864-469-2481.

Make a Brutally Honest Budget

This isn’t the time to look on the bright side or assume the best of your finances. It’s time to put pen to paper (or mouse to spreadsheet) and outline your income, your expenses, and any other obligations you may have. Overestimate your expenses and underestimate your income so you have a built-in buffer. Don’t forget occasional expenses, such as car repairs and vet visits, as well as non-fixed expenses like groceries and gas.

Switch Banks

Get a fresh start from your ex-spouse. If you shared an account with them, close it or remove one of your names from it.  Switch to a different bank, if you feel more comfortable with attaining some financial distance. This ensures they will no longer have access to your money via debit card or checks and that they’ll have no other way to make withdrawals from your account.

Set New Account Beneficiaries

This is a good time to check your account beneficiaries on your bank accounts and your retirement accounts. Should you pass away, you likely don’t want your hard-earned money to go to your ex. You may also want to look at your life insurance beneficiaries.

Consider New Credit Cards

If you have credit cards you shared with your ex-spouse, consider completely switching your spending to a new individual account. If you keep your old accounts open for the sake of your credit score, ensure your or your spouse’s name is removed as an account owner and authorized user.  Until that process is complete, set up alerts so you’ll know immediately if there’s any unauthorized spending.

This is particularly important if your ex-spouse was a big spender or had a history of financial dishonesty. Additionally, if you keep your old individual cards, make sure your ex-spouse is removed as an authorized user from the account.  If necessary, you may request entirely new cards with different numbers to ensure no further unauthorized spending on your accounts.

Focus on Your Credit and Debt

You may have been left with some separate or marital debt after the divorce. While this can be a bit of a burden, it’s also a small price to pay for your freedom. Come up with an aggressive plan to pay down your debt and free up that money every month. You can also focus on rebuilding your credit if it took a hit during your marriage. Keeping a low debt-to-available credit ratio and making timely payments are easy ways to bump up your score.

Explore Your Career Options

Now that you’re divorced, you may have more time to focus on your career. Why not look into career paths that have always interested you, or side hustles that add new income streams to your budget? You have more flexibility in your life now, so take advantage of that and take charge in building your own financial future and security.

Looking for Help with Your Divorce? Call Nowell Law Firm Now

Having the right attorney on your side can make your divorce go much more smoothly. Let’s sit down and talk about your next steps. Call Nowell Law Firm at 864-469-2481 or send us a message online to set up a consultation now. We’re here for you.