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.

How to Handle Financial Stress in a Marriage

Financial stress in a marriage is one of the leading reasons for divorce. Financial stress can affect almost every part of your life. If one partner comes into a relationship with more or less money, if one partner is a bigger spender, or if you are in debt, it can lead to a lot of anxiety. Begin by educating yourself on how to be financially savvy. Talk about money often with your spouse. It shouldn’t be a secret in your relationship. Know how much money is coming in and going out so that you can make a budget together. And finally, take baby steps. If you are drowning in debt, set a small goal and go from there. Hopefully, you’ll be able to build up savings and establish healthy spending habits so that financial stress doesn’t lead to relationship problems.

How to Handle Financial Stress in a Marriage: Don’t Let it Tear You Apart

Educate Yourself

The first important step to handling financial stress in a marriage is to educate yourself on how to be financially savvy. Learn how budgeting works and how different types of retirement plans can benefit you. Speak to a financial advisor, or take a class online to help you understand the ins and outs of being financially literate.

Talk About Money

Another way to help handle financial stress in a marriage is to not let money be a secret between you. You should talk about money often together. Even if one partner makes more or less than the other, you should both be included in important financial discussions. Both partners should have a firm understanding of your financial health as a couple. In addition, both partners need to have a say in how finances are handled.

Know Your In/Out

It can help you manage financial stress in a marriage if you have a clear budget. The best way to do this is to have a detailed picture of the money coming in versus the money going out. For example, for a month or two, track all of your spending and all of the money that you bring in. You might be surprised at how much you spend on things you don’t need. Then, make a budget that takes into account as many expenses and possible future expenses as you can remember. You’ll still have unexpected things come up, but hopefully, you’ll be better prepared for them.

Take Baby Steps

Finally, one last way to help manage financial stress in a marriage is to take baby steps when it comes to your financial health. If you are in debt or struggling, try to pinpoint one quick way to save a bit of money each month. You don’t have to solve your entire financial problem at once. Take it little by little. Start with an emergency fund. Next, begin to work on getting rid of debt by building a budget and sticking to it.

Managing the financial stress in a marriage can be difficult, but it is so important. Oftentimes financial stress can lead to marital problems, anxiety, depression, arguments, and even divorce. If you are suffering from financial stress, try to educate yourself on healthy spending. Then, sit down and talk about money with your spouse. You both need to be on the same page when it comes to your financial health as a couple. Get a clear picture of your spending by making a list of money coming in and going out. From there, create a budget and stick to it that gives you small attainable saving goals so that little by little you build your wealth. Hopefully, you’ll be able to tackle any debt that you have as a couple and learn to have a healthier relationship with your finances.

How-to Find a Post-Divorce Apartment

Following your divorce, you may need to start getting ready to move. Finding a new home can be both difficult and expensive. As a result, many people opt for a post-divorce apartment instead. If you’re in the market for an apartment, there’s a few things to consider while you’re searching…

How-to Find a Post-Divorce Apartment: Key Factors

Budget accordingly

One of the most important things to remember when looking for a post-divorce apartment is your budget. Your divorce may have left a bit of an impact on your finances. You may also need to completely redo your past budget. Therefore, you need to make sure your new apartment won’t break the bank.

Remember that there’s more to your apartment’s expenses than just rent. You’ll also have to consider costs like groceries and utilities as well. When you’re looking at an apartment, be sure to ask what is or isn’t included, and what other extra costs they may have.

Proximity to others

You should also consider how close your apartment is to others important to you. After your divorce, your friends and family are going to still be an important source of divorce. That’s why it may be good to find a place close-by to them. This makes it easy for them to come over and for you to spend time with them.

If you’re a parent, then you’ll especially want to give some consideration to your kids. It may be important to find a place which isn’t too far from your other co-parent to make things easier. You may also want to think about if your apartment will have enough space for your kids should they stay over there.

Future goals

Something you don’t want to forget to consider when looking for a post-divorce apartment is what your future plans are. For instance, consider what kind of job you want to work down the line. Will your apartment be close by to those opportunities? If not, then you may want to view this as just a temporary steppingstone.

Of course, you should also think about if you want to buy a new home. Some people like to stay in their apartment for a few years before settling down in a house again. Still, if you want to move into a new home sooner than that, you probably won’t want a super-long lease.

Prenups and Postnups: What’s the Difference?

If you are engaged and discussing financials, you might be wondering what the difference is between prenuptial and postnuptial agreements. Prenups and postnups both determine how a couple will divide their assets in the event of a divorce. The biggest difference is that prenups occur before marriage and postnups occur after a couple is married. A couple usually considers these types of agreements if one person is bringing a lot more wealth to the relationship and wants to protect those assets. Or if one is expecting to inherit large sums of money. Although both have their critics, many find that these types of agreements are the best way to protect your financial wealth.

Prenups and Postnups: What’s the Difference and Do You Need One?

What is a Prenup?

Prenups and postnups are very similar in concept, they just occur at different times. A prenuptial is an agreement between two prospective spouses that determines how their assets will be divided if they divorce. A lot of people feel that a prenup is anti-romantic. They think that it means a couple is already assuming they’ll divorce before they even get married. However, in the US, 50% of marriages end in divorce. Realistically, prenups are a wise choice to protect your financial security.

Who Needs a Prenup?

A couple might discuss prenups and postnups if one partner is bringing more money into the marriage than the other. Similarly, if one has a large estate or is going to inherit a lot of money, they may want one. A prenup prevents a couple from going through a long, drawn-out divorce if they decide to end their marriage. Prenups are especially common for people entering their second, third, or fourth marriages.

What is a Postnup?

Prenups and postnups are very similar, however, a postnup occurs after a couple marries. Other than timing, it’s basically the same as a prenuptial agreement. These have become more common in recent years. They are now legal in all 50 states. Like a prenup, a postnup decides how your assets will be divided in the case of your marriage ending. Similar to prenups, they don’t make any concessions regarding your children or future children.

Who Needs a Postnup?

Since prenups and postnups are so similar, you might be wondering why some opt for postnups. The main reason is simple convenience. Often, the planning stage of an engagement is so stressful and busy that a couple simply doesn’t have time to sit down and draw up a prenup. If this is the case, they’ll often decide to do a postnup instead. This is also an option for couples who feel that the conversation will be awkward and would rather wait until after they marry to have it. Like a prenup, postnups are encouraged if partners are bringing significantly different amounts of wealth into a marriage.

The bottom line is that prenups and postnups are very similar. The only difference between them is that prenuptial take place before marriage and postnuptials occur after the couple says “I do.” However, both of them are legal agreements that spell out what will happen to financial assets in the case of a divorce. If you decide that you and your partner should come to an agreement on either a prenup or postnup, you should consult an experienced attorney. They’ll help guide you through the process and make sure that you are protected financially in the case of your marriage dissolving. Hopefully, you’ll never need to go through the stress of a divorce, but if you do, having a prenup or postnup will make the process much easier.

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.

Prepare Your Finances for Divorce

Divorce is an expensive endeavor. You need to prepare your finances for divorce before you’ve even started the process. Both you and your partner should have representation by an attorney that will be able to help you navigate the divorce. You’ll want to start tracking your spending before you even begin proceedings. Next, you’ll want to gather documentation for everything finance-related. And it’s always a good idea to wait to make big financial decisions until the divorce is finalized. Preparing ahead of time will hopefully help make your divorce less complicated and less drawn-out.

Prepare Your Finances for Divorce: Get Everything in Order

Find an Attorney

The first step to prepare your finances for divorce is to enlist the help of an experienced attorney. Every aspect of divorce is confusing and complicated. But the financials can be especially overwhelming. An attorney will help you navigate all the decisions, and might bring up things that you wouldn’t have even known to ask for. Hopefully, you’ll only go through the divorce process one time, so you’ll want somebody with tons of experiences on your side representing your best interests.

Track Your Budget

Before you even begin the process you should prepare your finances for divorce by tracking your budget and spending. You can start this before you’ve even told your partner you want a divorce. Keep a list of money coming in and money going out for several months so that you have a good sense of where every dime goes each month. You don’t need to change your spending habits, just track them. And remember to include things that seem like one-time expenses like car repairs or a broken refrigerator. Tracking your budget will give your attorney a great overview of your spending and will allow them to know how to best represent your interests. It will also help the judge determine how to split your assets.

Gather Documentation

The next step you want to take to prepare your finances for divorce is to gather evidence of your assets. You’ll want records of your bank accounts, mortgages, investments, and statements. If your divorce is not an amicable one, your partner may try to hide these documents from you. So it’s best to prepare as early as possible and gather all of this early in the proceedings. Know that banks and other institutions are allowed to tell your spouse that you’ve asked for the info if you share the accounts. You’ll give all of this to your attorney so they can get a clear picture of your financial history.

Wait to Make Financial Decisions

Finally, an important tip to remember when you want to prepare your finances for divorce is to wait to make big financial decisions until it’s over. This is because you won’t really know how your assets will be divided until the process has ended. Therefore, you might have more or less money to use on financial decisions than you thought. You’ll also want to wait to change any wills, beneficiary documents, and insurance policies until after the divorce is finalized.

The prospect of going through a divorce is daunting, but it is helpful to prepare your finances for divorce as soon as you can. Enlist the help of an attorney early on. They’ll be able to help you navigate the process. It’s a great idea to start tracking your budget before you’ve even approached the subject with your spouse. You’ll also want to gather any documentation of your finances. And finally, remember not to make big financial decisions or changes until after the divorce is over. That way, you’ll know how everything shakes out and will know where you stand financially. Hopefully, with these tips, you’ll be able to handle the financial aspects of divorce without being overwhelmed.

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.

The Pros and Cons of a Prenup Agreement

Prenuptial agreements are a hot-button topic in the wedding world. There are several pros and cons of a prenup agreement that you should consider before discussing one with your partner. They can be a way of securing financial stability for the future. However, often they are seen as a romance killer and can cause prickly feelings between partners. If you’re wanting to approach the conversation about prenups, bring it up early in your engagement. Be willing to hear your partner’s concerns, and be open to negotiations. Hopefully, if you decide to go the route of a prenup, you’ll be able to come to an agreement that works for both parties.

The Pros and Cons of a Prenup Agreement: Should I Ask my Partner for One?

What is a Prenup Agreement

When considering the pros and cons of a prenup agreement, it’s important to fully understand what they are. A prenuptial agreement is a signed contract between two people who want to marry. The agreement spells out exactly what would happen to their financial assets in a divorce. It’s a way to prepare for the financial future if anything were to go wrong in a marriage. You should each have your own representation. Make sure an experienced attorney creates the prenup, and that you both have proof of your representation. Make sure and have the prenup notarized.

Positives of Prenup Agreement

There are many pros and cons of a prenup agreement. The most important positive is that a prenup creates a set guideline for your financial future in the event of a divorce. For example, it can lay out what happens with jointly owned property. Another positive is that it establishes that you and your partner can talk about finances early on in your marriage. Unfortunately, money problems are one of the most common reasons for divorce. Therefore, discussing finances upfront sets a good pattern for tackling money issues together. A prenup can also protect your children’s assets from a previous marriage. In addition, a prenup will protect any money you’ve accumulated on your own before marriage.

Cons of a Prenup Agreement

When considering the pros and cons of a prenup agreement, it’s important to remember that they are controversial. Many people feel that prenups are bad luck in an engagement. They look at them as if you’re preparing for a divorce before you’re even married. In addition, some partners can feel attacked or judged if you present them with a prenup. This is because it makes them feel like you value your wealth over their feelings. Prenups can give the impression that you don’t believe the marriage will last forever.

How to Approach the Conversation

If you’ve weighed the pros and cons of a prenup agreement and decided that you want to ask for one, it’s best to start the conversation early. Don’t spring a prenup on your partner the day before your marriage. Instead, begin the conversation early on in your engagement. Use it as a way of showing that you’re comfortable discussing finances with each other. Remember that your partner might have strong feelings about prenups, and reassure them of your commitment. Be open to hearing their concerns. You should both consult attorneys if you decide to move forward with a prenup. Be prepared to negotiate the terms.

There are significant pros and cons of a prenup agreement to think about. While nobody wants to go into a marriage thinking of divorce, it is very common. If you’re a practical person, you might see the positives of preparing for your financial future as necessary in case a divorce happens. However, the cons of a prenup are that they can make your partner feel as though you aren’t committed. Try to approach the conversation calmly and early on in your engagement. Give your partner time to think things through and negotiate. Hopefully, even if you do sign a prenup, you’ll never need to think about it again.

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.