How to Prepare For Financial Success in Post-Divorce Life in Illinois
Getting a divorce can be a major emotional undertaking. While that does not come as a surprise to most people, many people do not realize that divorce also has a large financial impact. Most married couples have finances that are intertwined to some degree. Even though this makes things easier and usually makes sense during a marriage, it can make things more difficult and stressful during a divorce. The key to success in your finances and your divorce, in general, is thorough preparation. If you are thinking about divorce or you are in the beginning stages of the process, here are a few things you can do to help prepare your finances and set yourself up for success after your divorce is finalized.
Open Up a Bank Account in Your Name Only
One of the first things you should do when you know that the divorce is definitely happening is to begin to separate your finances. The easiest way to start doing this is to open up a new bank account with only your name on it. You can begin to deposit your own income, like your paycheck from work, for example, into your bank account, rather than into a joint account held with your spouse. You will also likely be entitled to a significant portion of the funds in any joint bank accounts, and these can be transferred into your new account once your divorce resolution is finalized.
Pull Your Credit Report
You should also be cognizant of what your current financial situation looks like. You can do this by pulling a copy of your credit report online. By law, you are entitled to one free credit report each year from each of the three major credit bureaus. Your credit report will list any and all debts that you may owe both solely and jointly. These could include auto loans, mortgages, credit cards, and other loan accounts. Your credit report can help you understand what you will owe each month and can help you figure out what you need to separate.
Create a Post-Divorce Budget
One of the most helpful things you can do for yourself during a divorce is to create a post-divorce budget. Your financial situation after your divorce is likely going to look much different from your financial situation while you were married. In order to plan for success, you should look at your spending habits, in addition to your monthly debts and other expenses. Compare that to what you earn each month to make sure you will be able to survive. You can also use the budget as a basis to ask for spousal support or a larger portion of the marital assets.
Sources:
https://hermoney.com/connect/marriage/how-to-financially-protect-yourself-in-a-divorce/
https://www.nerdwallet.com/article/finance/7-ways-to-prepare-your-finances-for-divorce
