There’s no doubt that divorce is challenging and heartbreaking, but the good news is you will get through it. There’s understandably a lot on your mind during a divorce, but you need to think about your future self, too. Two of the biggest questions people have surrounding divorce is how it’ll affect their kids (if applicable) and how it’ll affect their finances. If you’re searching for answers surrounding your finances, we’ve got you covered. We’ve compiled a list of everything you should know about divorce and your finances; learn more below.
Divorce Can Affect Your Credit Score
In most couples, one person handles the finances, and if that’s not you, you better learn soon. People who aren’t good at paying bills on time can get in serious trouble with their credit scores. Even if you’re the financial guru, you’re not off the hook, either. Most marriages have joint bank accounts, and credit scores are often tied to those jointaccounts. Once you separate the accounts, both parties can experience a credit score hit—some are bearable, while others can be detrimental.
You’ll Likely Need To Make Lifestyle Changes
A lot of divorcing individuals overlook the fact that they’re soon going to be living on one income. Less money means you’ll need to make some lifestyle changes. For instance, if you’re used to going out to eat a couple times a week, you might need to cut it down to once a week or every other week. You can make the necessary lifestyle changes easier on yourself if you save money and have the expectation that changes are coming.
You’ll Need To Gather Documents and Open Personal Financial Accounts
You’ll also need to close any joint accounts and open your own. Opening your own bank account sounds easy enough, but it requires a lot of paperwork. Moreover, if you’re closing a joint account, you’ll need your ex’s signature, and the bank might require them to be present. Some of the documents you’ll need include bank and credit statements, debt statements, and pay stubs. The bank can provide a detailed list of documents you’ll need.
You Can’t Spend the Money You Get in a Divorce However You Want
Most divorces result in the judge ordering one party to pay alimony or child support (if applicable). Alimony is primarily there for financial support for whatever the recipient needs; that said, if you do have kids, child support is a little more complex. If you’re receiving child support, it’s crucial that you know what you can use child support for—and what you can’t. In general, child support is meant to help you maintain your child’s well-being.
Of course, every divorce is different, so your situation might have slightly different guidelines. That said, our list of everything you should know about divorce and your finances will apply to everyone. Remember that a divorce is only temporary and that you’re only going to be stronger by the end of it.