Three Financial Chores You Need To Tackle Before Filing For Divorce
Even when you know it is for the best, filing for divorce can be a tumultuous time in any individual's life. Before filing, take a few moments to accomplish some of the errands on your to-do list. By doing so, you ensure you are financially prepared for life after divorce.
1. Establish Credit in Your Own Name
During a marriage, it is not uncommon for one spouse to have the majority of debt solely in his or her name. This is especially true in households where one spouse was a stay at home parent.
It is essential for you to build credit in your own name. Good credit can help you buy or rent a home, purchase a vehicle, and set up utilities in your own name.
If your credit record is sparse or contains derogatory remarks, start small with a store credit card or even a secured credit card. Once you establish a positive payment record, apply for a card with one of the major credit companies. Eventually, work towards maintaining a mix of credit products, such as credit cards, loans, and lines of credit.
Make sure that you keep any balance on the card relatively low compared to the card's limit. Maxing out your credit card, even when you have a positive payment history, hurts your credit.
2. Decide Where You Want to Live
Take time to consider your living options after the divorce is final. You may stay in your family home or get a fresh start in a new property. If you and your spouse both want to stay in your present home, don't leave until the judge dictates who gets the home.
Don't let your emotions dictate where you live. If your present house is too expensive for your post-divorce budget, it is time to let it go. Many divorcees try to hold onto a home that is too expensive because they think it will be better for their children or because it holds so many memories. However, struggling to live in a pricey home hinders your ability to start your new life out on firm financial footing.
3. Close All Joint Accounts
It is in your and your spouse's best interests to close all joint accounts as soon as you know divorce is imminent. Each spouse should take half of the money in your checking and savings accounts and open up a new sole account.
All credit cards with both of your names on the account must also be closed. If you don't close the accounts, you may be held responsible for any additional debt that your spouse accumulates on the card.
For more information, see a website such as http://gomezmaylaw.com/.
