fbpx

Category: Financial Impact of Divorce

Talking About Money with Your Spouse

Talking about money can be an awkward conversation for many people. Many are brought up not to discuss finances with anybody, even their spouse. However, finances are one of the main sources of stress in a marriage. You and your spouse must be able to have healthy discussions about money. It’s not a good idea to have one spouse handle all the finances in a relationship. It should be a group effort between the two of you so that you both have a say in things. Choose the right moments to talk about money, plan them. And continue to have them throughout your marriage. Money will always be a part of your life, so keep the conversation going. And make sure that both you and your spouse can be honest with each other about mistakes. Having a healthy relationship with finances will strengthen your marriage.

Talking About Money with Your Spouse: Having the Awkward Conversation

Do I have to?

Talking about money with your spouse is very important and a necessary part of any marriage. Finances are one of the main sources of stress in relationships and are often cited as a reason for divorce. Both spouses must have a say in their spending habits. It’s also important that both spouses are aware of your overall financial health in the relationship. Many times, people are blind-sided about the state of their finances if they haven’t been having conversations throughout their marriage about money. Being unaware of your financial situation and trusting your partner with money can leave you vulnerable and ill-prepared if something changes in your marriage.

Choose the Right Moment

Talking about money should be an ongoing discussion in your marriage. However, it’s important to pick the right time to talk about money. It’s a great idea to schedule a time to talk about money together. For example, plan a meal one night where you’ll check in with each other and discuss financial goals. Make sure to have financial conversations when you’re both calm. For instance, it’s not a great idea to bring up money when you’re in the middle of a fight.

Make it an Ongoing Discussion

While you should be careful about picking the right time for talking about money, it should be an ongoing discussion in your marriage. Money is something that will always be a part of your life, and it’s easy to get into troublesome spending habits. One way to prevent this is to make sure that you are frequently checking in with one another. Your relationship will change, and your financial goals likely will as well.

Be Honest About Mistakes

Finally, when talking about money with your spouse, it’s important, to be honest with one another. Hiding debt or financial troubles can lead you down a dangerous path in marriage. You both will likely go off-track with spending once in a while and that’s perfectly normal. However, it’s important to be honest so that you and your partner can work together to get back on track.

Talking about money can be a tricky situation for a lot of people. However, it’s incredibly important in a marriage because finances play such an important role in your overall life. Both partners should be very aware of the financial health of the relationship, and you should work together to create financial goals. Make time in your schedule to discuss your money, and make sure that you keep the discussion going throughout your marriage. Finally, be open and honest about any financial concerns or mistakes. You and your partner need to be on the same page with spending. Having a healthy relationship with finances can increase the strength of your marriage and smooth out a lot of marital stress. Whether you have plenty of money or are struggling financially, it’s important to handle it as a team.

How-to: Choose a Divorce Lawyer

If you want to learn more about how to choose a divorce lawyer, you can learn more from this video.

When you start the divorce process, you will have a lot of things on your plate. From where you are going to live, to figuring out your finances and how this will affect your kids. One of the things you will also need to start working on is looking for legal help. It can be difficult to know who to turn to when you are faced with divorce. Not many people have had experience with this process before, so it can be difficult to know what to do. In a divorce, there is a lot on the line. Learn how to choose a divorce lawyer that is right for you and your situation.

How-to: Choose a Divorce Lawyer: Weighing Your Options

Rethink What You Want

Initially, you may think you want a really aggressive lawyer that is going to start fights and make your ex’s life miserable. Take a step back and evaluate if this is how you really want to proceed. While you do want someone to fight for you, you do not want someone who is going to create mayhem and absolute chaos. This will make everything harder for you in the long run. Having a fair and healthy divorce will be much easier for everyone. This may make you rethink what you want when you choose a divorce lawyer.

Ultimately, the goal of this process is to get divorced. Not only that, but you want to do that without much impact on your life. Do not let your emotions go crazy when it comes down to negotiating over material things that don’t mean much to you in the long run. If you do this, your divorce will become more expensive and longer than you had planned for it to be. Is it worth it? No, it won’t be. Focus on getting divorced as quickly and with as little financial damage, as possible. With this, be realistic about your attorney and what you expect from them. You do not want them to double as your therapist. That is not their job, and this will cost you much more than speaking to an actual therapist.

Looking for a Lawyer

You may feel overwhelmed when you try to choose a divorce lawyer. There are so many options. However, don’t jump to hire the first lawyer you meet. Not all lawyers are equal. Interview at least 3 different divorce attorneys before you decide. One thing to consider is that you should look for a lawyer that specializes in family law. You want a lawyer who is knowledgeable and experienced. Other good traits are good communication and negotiation skills.

You can also ask friends and family for recommendations. Recommendations can go a long way. Get their input on lawyers they had both good and bad experiences with. Also, look at the attorney’s trial record and success in court. This will give you an idea as to how good they are at negotiating. This will help give you an idea about which lawyer to choose to help you through your divorce.

Who Needs a Will? When do I Need a Will?

Knowing who needs a will and when you should create a will is an important step in preparing for you future. A will is a legal document that spells out what will happen to your assets if you die. It also lays out who will be in charge of managing your assets. If you are married, you should create a will. If you have any children, you’ll want to create a will for their benefit. And anybody with positive assets should have a will in place. Having an experienced attorney guide you through the process of creating a will should give you peace of mind about your loved ones after you pass.

Who Needs a Will? When do I Need a Will?

Married

If you are married, then you’re someone who needs a will. When you die without a will, your assets would likely pass to your spouse, but it’s not a guarantee. Therefore, a will can ensure that your spouse receives your assets if that is what you wish. If there is anybody else that you want to give some assets to, this would be included in your will.

Children

Parents definitely fall into the category of people who need a will in place. In general, children inherit after your spouse has also died. So if you’d rather they inherit assets differently, you’ll need to spell that out. You can choose how to divide assets and property among your children however you’d like. In addition, a will lays out who the executor of your estate will be. It will also designate guardians for your children. This is obviously a huge part of why you need a will. The guardian will be in charge of raising your children after your passing. You’ll need to update your will if you have more children, or if anything changes with your guardianship plans.

Positive Assets

Finally, the question of who needs a will also depends on your assets and debt. If you have positive assets, you’ll want to create a will. Having positive assets means that your assets are greater than your debts. Therefore, if you’ve made and saved a lot of money and it exceeds any debts then you’ll want to designate what happens to it. Similarly, if you’ve inherited large sums of money or property, you’ll need to spell out what should be done in the event of your death.

If you’ve been wondering who needs a will, the answer really depends on whether or not it’s important to you to designate what happens to your assets or property after you die. For example, if you’re married and want to make absolutely sure your spouse inherits, or want to prevent that for any reason. If you have children, a will is important so that you can designate how they inherit assets and property from you. It also will spell out who should care for them after you die. And finally, if you’ve managed to save a bigger sum of money than your debts, you’ll want to designate who it goes to. By creating a will, you’ll be able to take care of loved ones even after you pass away.

Post-Divorce Credit Score: Build Yours

Divorce can not only be an emotionally tough time, but a financially tough one as well. As such, it’s important you get your finances back on track. A big part of that will be building up your post-divorce credit score. With how important credit scores are, it’s key that you do so properly…

Post-Divorce Credit Score: Prepare For The Future

Check your current score

Of course, before you can improve your post-divorce credit score, you’ll need to know what it is. This is best done by ordering a credit report. You can do this via one of the three major credit bureaus. With this report, you’ll be able to see both individual and joint debts that you have.

Individual debts are ones which are solely tied to you. However, joint debts are ones are ones where both you and your spouse are responsible. If either one of you fails to make a payment, then you both will be negatively affected.  Therefore, keep track of these accounts, and they’ll be important for your next step.

Reorganize your accounts

Now that you know what your debts are, it’s good to reorganize your accounts. First, you may want to consider opening new individual ones. By starting now, you can help your post-divorce credit score in the long run. Still, if that isn’t something you want to do, then paying down any existing ones will also help.

Next, take steps to close any old joint accounts you have. Get in touch with your lenders and ask them to transfer these accounts to individual ones based on your divorce agreement and have them closed. You should also remove you and your ex’s name from any accounts which have you as authorized users. Taking these steps will help make this debt more manageable for the both of you.

Pay your bills

In the commotion of divorce, it’s easy for bill payments to fall by the wayside. However, missing these payments can be pretty bad for your post-divorce credit score. Therefore, you want to make sure you pay them on time as best as you can.

A good way to do this is by setting up automatic payments. That way, you won’t have to worry about accidentally forgetting to make a payment. Slowly but surely, your score will rise as you continue to make on-time payments.  

How-to: Update Your Estate Plan After Divorce

There are many things you will need to change and update if you get a divorce. For one, your will and estate plan will surely look different after a divorce. While there will be a lot of things on your plate, you will not want to forget to update some very important documents. These include your will, living trust, power of attorney documents, and your beneficiary designations. Learn how to update your estate plan after divorce.

How-to: Update Your Estate Plan After Divorce- Changes to Make

Will

If you want to update your will, the best way to do so is to make a new one and revoke your old one. You can revoke an old will by destroying it by means of shredding it or burning it. Another option would be to just make a new will and state in it that you are revoking your previous one. While divorce itself should divert any of your assets away from your ex, their portion will be given to another beneficiary. You should check into this, because the alternative beneficiary may not be who you want your assets to go to. The best thing to do is make a new, updated will based on your current wishes.

You can also state who you would like to take custody of your kids if both you and their other parent were to pass away. If you alone were to pass away, the other parent would likely get custody of your kids. If you want to contest this, you will need to indicate in your will the reasons that their other parent is not fit to raise them. This would at least be taken into consideration by a judge in the event of your death.

Living Trust

You should also update your trust as part of your estate planning after divorce… You will likely need to update some of the languages in your trust. Also, you will need to decide who you want each part of your trust to go to upon your death. Trust can cover things like bank accounts, IRAs, 401(k)s, 403(b)s, pensions, and more. By designating the trust to go to your minor children, you could prevent your ex from being able to control their assets.

Update Beneficiaries

It is likely that your ex is the beneficiary on most or all of your financial accounts. When you update your estate plan after divorce, you will want to consider changing this unless you still want your ex to get these accounts. If you have a new, updated trust, you can make the trust your beneficiary. This is especially helpful if your kids are minors. Otherwise, if you just directly put your minor children as a beneficiary, a court-appointed guardian will get it first. This court may choose your ex-spouse to be their guardian.

It is common for you to have to split your retirement accounts as part of a divorce. Usually, this is because they are marital property. Therefore, you may not be able to change who is the beneficiary on these accounts.

Where Should I Live Post-Divorce?

Figuring out where to live post-divorce can be a very stressful part of the overall divorce process. Some couples choose to have one person remain in the family home while the other moves out. If this is the case for you and your ex, think about finances when deciding where to move. It’s also important to consider whether you want to rent or buy and make sure that you don’t get yourself into a situation where you are spending beyond your means. For others, it makes more sense to try alternative custody arrangements like nesting or double nesting. It’s important to figure out what makes the most sense for you and your family. Hopefully, you can find a new place soon where you can begin fresh in your new post-divorce life.

Where Should I Live Post-Divorce? Figuring Things Out After the Divorce is Over

Consider Finances

If you are considering where to live post-divorce, finances are an important factor to consider. It’s best to take a look at your overall financial health after the divorce is final. Figure out a feasible budget and speak with a realtor and lender about your options. It might make sense to purchase a property that can build you equity. For others, it might make more sense to rent.

Don’t Stretch the Budget

It’s important to avoid becoming “house poor” when you are considering properties post-divorce. House poor is a term that means that you can afford your house, but it’s taking up all of your income. You might not default on your mortgage, however, you don’t have room left in your budget to do anything else. For example, travel, save, or purchase anything fun. When considering a property’s price, make sure that it fits easily into the budget rather than being a stretch.

Consider Location

Another big consideration when considering properties post-divorce is location. Especially if you share custody of your children. You’ll want to be close to them for purposes of custody hand-offs with your ex. It’s also helpful to be close to their school or extra-curricular activities. This way, you can cut down on travel time when doing custody switches with your ex.

Alternative Custody Arrangements

While many couples choose to have one parent stay in the family home and the other move out to a new property, others choose alternative custody arrangements. One of these is called nesting. If you choose to do nesting, you and your ex would switch off living in the home with the kids and living in a separate apartment. Another arrangement is called double nesting. This means that both ex’s live in the same home with the children, but each has their own space. Both of these arrangements require you to have a cooperative relationship with your ex.

Figuring out where to live post-divorce can be complicated, and a lot depends on your specific situation. If you and your ex get along very well, you might consider some custody arrangements where you share spaces like nesting or double nesting. If you’d rather have some separation you can go the more traditional route of finding a new house or apartment to rent. It’s important to consider your budget and make sure that you aren’t stretching yourself too thin financially with the cost of the home or rental price. Additionally, make sure that you are keeping in mind the location and proximity to your children if you share custody. Hopefully, you can find the perfect set-up for your family so that you can move on to the next stage of life.

How-to Get Your Finances in Order After a Divorce

Divorces can do a number on your finances. They can make you go from a dual-income to a single-income, change your tax and insurance situation or even add on unexpected debt and expenses. You may have to create new financial goals or even rebuild your credit. On top of that, you will have to be doing this all while juggling putting the pieces of your life back together. The key here is to be proactive and start working on getting your finances in order after a divorce as soon as you can.

How-to Get Your Finances in Order After a Divorce: Steps to Take

Budget

The first step to take to get your finances in order after a divorce is to evaluate your budget. The divorce could have resulted in a change in your household income, or you may have different expenses now. Whatever the current situation is, it will be helpful to look over your budget. If you do not have a budget already put together, now is a great time to create one. You need to be honest with yourself and build a budget that fits with your current circumstances. If your finances have changed but you continue to live your previous lifestyle, you will be headed towards financial trouble. You may have to end up needing to downsize your house or get a cheaper vehicle. Also, you may have to make other changes to your habits in order to set yourself up for financial success.

Credit

You will also want to work on building credit if you do not have a good credit score or your own credit history. If you did not have credit cards or a loan in your own name while you were married, start working on building your credit history ASAP. To qualify for a loan or rent a place to live, you will need to have a good credit score.

Keep in mind that you will often need credit to get credit. If you are unable to get a qualify for a traditional credit card on your own, there’ another option. Instead, you can apply for a secured credit card. These require you to deposit money that’s equal to your line of credit. Use this card to make small purchases and pay off the card on time each month. This will allow you build a good payment history and help your credit score. Be sure to remove your ex from any shared credit cards. Also, refinance your house so that only the person who is responsible for the payments is on the loan. This will prevent your ex from forgetting to make a payment or going into credit card debt and hurting your credit score.

By taking a few small steps, you can proactively get your finances in order after a divorce. Bt making an honest budget and sticking to it, plus building a strong credit history, you will be on the right track.

How to Talk About Money with Your Spouse

It can be awkward to talk about money with your spouse, especially if you’ve been raised to never discuss finances with anybody. However, it’s a very important part of your lives together. Both you and your partner need to have a clear picture of your financial health. Start the conversation early in your marriage or even before you tie the knot. Be honest about debt and spending habits. Work together to figure out a financial goal. This could be a plan to get out of debt, a saving plan, or a retirement plan. And finally, keep the conversation going constantly throughout your lives. You should always be on the same page with finances with your spouse. Talking about money is a healthy part of any marriage that will make your relationship stronger.

How to Talk About Money with Your Spouse: Starting and Continuing the Conversation

Start Early

It’s important to talk about money with your spouse early on. It’s a great idea to discuss finances before you even get married. You should each have some idea of what kind of debt and income the other has so that you can plan accordingly. Once you start living together it’s important to be on the same page with spending and living habits.

Be Honest About Debt

Another important aspect of learning to talk about money with your spouse is to always be honest. It can be embarrassing to admit it if you have debt. However, your spouse needs to know the full picture. Be upfront about your spending habits. If you feel that you have problems with overspending, work together to come up with a solution. Hiding debt doesn’t make it go away.

Work Together

When you talk about money with your partner, you can work together to come up with financial goals. If you can, meet with a financial advisor who can help you create some realistic goals for your money. Come up with a plan to get out of debt, save for your future, save for emergencies, and a retirement plan. Don’t forget to save for things like vacations and home improvements, too.

Continue the Conversation

Finally, once you start to talk about money with your spouse, continue the conversation. You should both be checking in with each other about your financial health frequently. Both partners should have a clear idea of how on track you are with your goals. You don’t want to be surprised by unexpected financial problems. Keeping the lines of communication open will keep you both more on track with your spending habits.

You and your spouse need to talk about money throughout your marriage. After all, our lives depend on money entirely and you now have joint assets. You don’t want any financial issues to take you by surprise. Both of you should have a clear picture of your financial health throughout your marriage. Even if money is tight, this will allow you both to work together to start making things better. Start the conversation early and keep it going throughout your marriage. Be upfront and honest about spending habits and debt. And finally, work together to create some financial goals for your lives together. Whether you have plenty of money or are barely scraping by, tackling financial issues together will make your marriage stronger.

Building Your Credit After a Divorce

Building your credit after a divorce is extremely important. Your credit score affects what kind of apartment or home you can afford as well as what vehicle you can purchase and much more. If you have a low or no credit score, it will be difficult to even find a place to live after you are separated. So building up your credit during or right after your divorce is key. Open up your accounts and begin putting all of your sole money in there. Pay all of your bills on time every month, and pay off credit cards as well. Work with your ex if there is any joint debt. And finally, set a tight monthly budget and stick to it as closely as possible. Divorce can negatively impact your credit score, so it’s important to know how to build credit back afterward.

Building Your Credit After a Divorce: Recovering Financially

Open Your Own Accounts

Building your credit after divorce begins with you opening up your bank accounts in your name only. You likely already have some joint accounts with your ex, but now is the time to open some that are only in your name. You’ll want to open a savings and checking account. Move all of the money that is yours alone into these accounts. It’s also a good time to go ahead and close any joint accounts. You don’t want your ex running up large debts with your name still attached to the accounts.

Pay Bills on Time

It’s important to pay all of your bills on time when building your credit after a divorce. This also includes new payments like alimony and child support. If you are late on your bills each month, it can negatively impact your credit score. It’s also a good idea to pay off your credit cards in full each month.

Work With Your Ex

While building your credit after a divorce, you might have to deal with some joint debt with your ex. It may be the last thing you want to do to contact your ex, but if you can work together to pay off joint debt quickly, it will help your credit. There are many ways to work on paying off debt, for example, the debt snowball. This is where you pay off your smallest debts first, then use the money that you save from those debts to pay off larger ones. Eventually, you are debt-free.

Set a Monthly Budget

Finally, when building your credit after a divorce, it’s extremely important to set a monthly budget. It’s best to set a very tight budget and live as modestly as possible for a little while. This will ensure that you have plenty of money to pay off any debts and pay off credit card bills every month. If you have plenty of money in savings, an unexpected expense isn’t the emergency it might be if you weren’t budgeting well.

Building your credit after a divorce can take a while, so it’s important to start as soon as possible. Some people think it’s wise to go ahead and open up a credit card or bank account before they even begin the divorce process so that they can start establishing credit on their own. Always pay your bills on time each month, including any new payments like alimony or child support. Work with your ex to try and pay off joint debts as quickly as possible to help both of your credit scores. And finally, budget budget budget. Living frugally will allow you to put away some savings so that unexpected expenses don’t end up hurting your credit score by going to collections. Helpfully, you’ll be able to bounce back financially from divorce and build up your credit quickly.

Financial Steps to Take Before Filing for Divorce

There are several financial steps to take before filing for a divorce that can help you in the long run. Being organized before you’ve even announced to your partner that you want to separate can help you protect yourself and your assets. The first thing you’ll want to do is hire an experienced divorce attorney to represent your best interests. You’ll also want to organize your finances. Establish credit in your name if you haven’t already. And finally, close joint accounts or remove half the savings to protect yourself financially. Divorce can be incredibly stressful but a little prep work before you begin will be very helpful later.

Financial Steps to Take Before Filing for Divorce: Protect Yourself and Assets

Hire an Attorney

The first step to take before filing for divorce is to hire an experienced divorce attorney. They’ll be able to guide you and give you a breakdown of exactly what things you should be doing. They’ll be representing your best interests and will be a helpful asset to have on your side. Make sure that you find an attorney you are comfortable with and be honest with them.

Organize Your Finances

The next step you’ll want to take before filing for divorce is to organize your finances. Figure out what your and your spouse’s overall assets and debts are. You will hopefully split all of these things equally during the settlement. But your attorney needs to have a clear picture of what your financial situation looks like so they can fight for you. You’ll also want to organize documents relating to proof of income, student loan debts, and tax returns.

Establish Credit

If you don’t already have credit in your name, you’ll need to establish credit before filing for divorce. Some couples only have joint accounts. If this is the case, before you even announce your divorce to your partner, you’ll want to quietly begin building credit in your name. This is so that you’ll be able to buy a car or rent your own space once the divorce is over. One way to do this is to take out a credit card in your name only and begin using it and paying it off.

Close Joint Accounts

Finally, one final step to take before filing for divorce is to protect your assets in shared accounts. You need to protect yourself financially If you are worried that your spouse will raid your joint accounts and empty them. You can remove half of the money and move it to an account only in your name. In addition, it’s a good idea to close joint credit accounts so that your ex cannot run up charges that you’ll later have to negotiate in court. It’s less complicated if you can simply pay off any joint credit cards and then keep your finances separate moving forward until the divorce is over.

Divorce is stressful and complicated. It can also be extremely expensive. You want to start on the right foot by financially preparing yourself before filing for divorce. Hire a good divorce attorney so that they can guide you through the divorce proceedings. In addition, evaluate your overall financial health and organize the paperwork you might need. If you haven’t already, establish healthy credit in your name. And finally, protect money in your joint accounts and close credit accounts that are held in both your names. Hopefully, you’ll be able to protect yourself financially and get what you want out of your divorce settlement.