Making the decision to divorce often includes many life-changing factors, but few are as important as how to survive financially during the process. U.S. News notes that in many cases, one partner has little to no knowledge of the other’s financial dealings, especially when he or she manages the household money.
If you plan on divorce in the near future, there are several financial steps you may want to take now to prepare and to help ensure a financially stable future.
Take stock of your finances
If you are casual about how you manage your finances, now is the time to start creating new tracking habits. Sit down and take a frank appraisal of your money, including such details as:
- Total debt you owe in your own name
- The debt you owe jointly with your spouse
- Your credit score
You may also want to order a credit report from one of the three main reporting companies, Experian, TransUnion or Equifax, to review your past credit history and make an effort to repair any errors you might find there.
Secure a credit card in your name
If you have credit cards that you use jointly with your spouse, you may want to apply for one in your own name before announcing your intent to divorce. Once the proceedings begin, securing credit could present a challenge, especially when you consider the overall cost of a divorce and how it might impact your credit.
It is wise to monitor your credit and tighten your budget during the divorce to further secure your financial future. Avoiding large purchases and opening a new savings account in your name can also help support your newfound independence.