How Not To Become A Financial Victim After Divorce
Divorce is a hardship in many ways. It can take a toll on you physically and mentally, and it can affect you financially whether you are the breadwinner or not. You are losing an entire income that you had to help pay for the bills, and you could be responsible for bills that you didn't even know you had. You could even end up being ordered to pay for things in your divorce such as alimony, child support, and attorney fees. If you aren't careful, you could end up on the losing end financially. See below for tips on how not to become a financial victim after your divorce.
Educate Yourself
Prior to your divorce, you should educate yourself about your finances. This isn't simply what you have in your checking account or savings accounts; you should also know what is in the retirement funds and how much your bills are, including monthly accounts and any outstanding loans or credit cards. Start taking a look at financial documents and at pay stubs if you aren't aware of how much money your spouse makes. Going through a divorce without knowing any of this can blindside you, so educate yourself with this information.
Get Your Finances Together
Before a divorce filing, get your finances in order. Get bills caught up, and find out how much is owed on loans such as credit cards, student loans, vehicle loans, and other loans. Be sure these loans aren't higher or accruing more money (such as on credit cards). If your soon-to-be ex is adding more onto the credit card, you may not be responsible for helping to pay back anything that is purchased after the divorce filing.
Inventory Your Assets
If you have things in your home that were part of your marriage that can be liquidated for money, take note of these items. Take an inventory of your belongings that can be sold, such as a coin collection, vehicles, gun collection, jewelry, stocks, or property. Taking an inventory of these items can help later down the road when you're splitting assets. It can also help if your spouse ends up selling these items before the divorce settles.
Get A Job
If you are someone that has been home taking care of the family and aren't bringing in any income at all, it's time to look for work. You'll need to be able to take care of yourself (and your children) after the divorce and should be able to pay your own way. Make sure you have some sort of income, and if you need to move from the family home, that you can find somewhere to live that you can afford.
Divorce can be messy and can also get ugly. Don't become a financial victim and end up penniless post divorce. Be smart about your finances, educate yourself, take inventory and be sure to find a job that can support you after your divorce. Contact a divorce lawyer for additional advice.