How to Build Financial Security When Facing Divorce
If you see divorce or separation looming in your future, there are ways to plan ahead and build financial security to prepare for what could be a financially difficult time ahead. Here are some tips for you to prepare for the future if you suspect that times are tough in your marriage.
Open an individual bank account. If you don’t already have a bank account in your name only, get one. Save here and there when you can. Have a place where you have your own funds for emergency access when necessary. Even if these are marital funds to be shared later, have an accessible account with monies set aside.
Get a credit card. Particularly if you are not the bread winner in your family, apply for a credit card before the divorce has been initiated. This way, you can use the full household income in your application and you can begin building credit. Use the card here and there and pay it off monthly to build credit.
Reset all passwords. If your accounts are now individual, take a moment to reset all passwords and secure your finances.
Learn about investments. Often one of the two spouses is the “money person” of the relationship. I hear “oh my husband handles that” or “my wife has always controlled the finances” in most of my appointments. That is not a bad thing. But, in the eyes of divorce, it’s time to start learning how to do these things on your own. Read. See a financial planner. Educate yourself. You will be handling these thing now and you want to make wise decisions for your future.
Make new purchases in your name, if possible** Be careful with this one and make sure to check with your attorney when proceeding. If you are about to buy a car, consider obtaining the loan and registration in your own name. This will help to build credit in your name. It will avoid having to transfer the title and loan later. The reason why I say to be careful is that you don’t want to do this if you may not be in a position to pay this loan later.
These are general tips that I think help most folks on the heels of a divorce. That said, always check with your attorney when you have questions! If you don’t have one, call me!