Recovering Financially After Divorce

Posted on by Robert J. Reeves
Recovering financially after divorce can be a lengthy process. Divorce is very expensive and can leave you in a very different financial situation than before you started. So it’s important to take stock once the dust settles and see where you are with your finances. Figure out your credit score, and work on rebuilding credit if it’s low. Create a budget and try to stick to it as much as possible. And remember to focus on your savings account so that you are prepared for emergencies and unexpected expenses. It can be helpful to get help from a financial advisor to create a realistic budget. Hopefully, you can begin building up your credit and putting away money for savings.

Recovering Financially After Divorce: Moving On without Going into Debt

Take Stock

After you’ve given yourself a little time to heal, it’s important to take stock of where you are once the divorce is final. Your living situation might have changed as well as your expenses and income. Therefore, it’s helpful to create a list of all of your assets, debts, income, and savings. Figuring out what’s coming in versus going out can help you with recovering financially after divorce.

Find Your Credit Score

Another important aspect of recovering financially after divorce is to figure out your credit score. Your score might change now that you and your ex have separate accounts. And your credit score is very important when you need to make decisions about housing or vehicles. Check your score, and if it’s low, look into ways to bring it up. Make sure to always pay bills on time and pay them in full.

Create a Budget

Now that you are living on your own, you need to create a budget for yourself. This might look very different than the budget that you and your ex shared. It can be helpful when recovering financially after divorce to put yourself on a limited budget to build up your savings. Try to cut back on unnecessary spending like eating out or purchases. At least for a little while until you can get more stable.

Focus on Savings

Finally, when recovering financially after divorce, focus on your savings. It’s important to have healthy savings account so that you are prepared for emergencies. Or for unexpected expenses like medical bills, car maintenance, or house repairs. It’s just you now, so you need to have a safety net for yourself. Focus on an emergency fund first, then move on to saving for things like vacations. Recovering financially after divorce can be a stressful process, and might be an eye-opener if you’ve never lived on your own. It can be scary to go from two incomes to one or to lose the support of a spouse’s income. However, you will find your way soon enough. Take stock of all of your spending and savings once the dust has settled from your divorce. Figure out your credit score and start working on building it up if it’s a little low. Create a budget and try to stick to it as closely as you can. This way, you’ll be able to build up your savings so that you’re prepared for emergencies. Hopefully, you will figure out your finances and become stable quickly as you build your savings up.

The Logistics of Divorce: The Details

Posted on by Robert J. Reeves
When we think of divorce we often forget about the logistics of divorce. The tiny details have to be figured out for a divorce to become final. For example, you’ll need to decide when and how to tell people about your split. You’ll also need to figure out when and how to move out. Changing your name can be a lengthy process as well. And finally, you’ll need to work out your custody agreement and parenting plan. When thinking about the divorce process, on the whole, it’s easy to forget these smaller logistical details.

The Logistics of Divorce: The Details that Need to be Hammered Out

When to Tell People

One part of the logistics of divorce is figuring out how to tell people about the divorce. It’s really best to keep your divorce as private as you can until it’s final. However, there are some people that you’ll probably want to tell ahead of time. For example, your parents or close family members. You should also let any close friends know that you’ll need support so that they can help you through the process. And finally, you should give your boss or HR rep a heads up in case you’ll be needing to miss work for court appearances and meetings.

When to Move Out

Another piece of the logistics of divorce is deciding when and how to move out. You can decide at any point when the time is right to have your partner move out. But you’ll have to figure out which of you will be leaving and how you’ll be handling the finances of mortgage payments. You’ll also need to figure out if your children will be spending time at both houses.

Changing Your Name

Another piece to consider when thinking of the logistics of divorce is changing your name. This process can be lengthy and complicated. You’ll need to wait until your divorce is final before trying to change your name back. But once it is, you can start at the social security office. Once you have your new social security card you can begin to change your name with other entities. You’ll need to update the post office, credit cards, bill payments, and others. You’ll also need to apply for a new passport and driver’s license with your new name.

Custody Agreements

Finally, one final piece of the logistics of divorce is deciding custody. You’ll most likely cover this in your divorce court meetings, but have an idea of what you’d like to get out of it. Consider things like what your ideal schedule will look like and how you’ll handle holidays. Also consider major parenting decisions like how you want your children brought up, what religion, how they’ll be disciplined, who they spend time with, curfews, diet, etc. Make a plan for how you’d like to financially prepare for schooling and child-care-related expenses. Most of this will be decided on in court, but it’s a good idea to have some plan for what your goals are. Divorce can be overwhelming and emotional. And often we forget about the smaller logistics of divorce amongst the more pressing matters. But the details are important too. You’ll need to decide when and how you’ll tell everybody about the news of you splitting up. You’ll also have to figure out what your and your ex’s new living arrangements will be. Don’t forget about changing your name. And finally, you’ll need to decide custody agreements and put a parenting plan in place if you plan on having joint custody. They say the devil is in the details, but hopefully, you’ll be able to prepare for these logistical details of divorce and make the process smoother.

How to Build Credit During or After Divorce

Posted on by Robert J. Reeves
It’s extremely important to build credit for yourself if you are going through a divorce. That way, after your divorce, you will be able to do things like buy a car or rent an apartment. Ideally, you should be building credit your entire life. But if you haven’t already, it’s not too late to start. To establish credit, the easiest way is to open a credit card. Then you’ll need to practice healthy spending habits as well as borrowing habits. Having your own credit is necessary for having financial independence after your divorce.

How to Build Credit During or After Divorce: Financial Health

When to Build Credit

Ideally, you should build credit throughout your entire life. Parents often start building credit with their teenagers by opening a credit card in their name in high school. This is a good way to teach financial responsibility. However, if you do not have credit in your own name, you’ll need to build credit soon. It’s best to go ahead and establish a credit card before your divorce is final. This way, once it is over, you’ll be able to rent a new apartment or house or make big purchases on your own.

How to Establish Credit

The easiest way to build credit is to open a credit card in your own name. You can do this at any bank or online. This will establish a credit history for you. It can be difficult to open a credit card if you do not have any credit history whatsoever. So you might need to start with having a cosigner or getting a secured credit card. This is a card that is backed by a financial deposit that you make upfront.

Healthy Spending Habits

It’s important to establish healthy spending habits in order to build credit. Learn how to budget for things in advance. It’s also important to learn self-control so that you can stick to your budget. Keep track of your spending by reviewing your statements frequently. This will ensure that you don’t become a victim of identity theft. And remember to put a portion of every paycheck into your savings account before spending any of it.

Healthy Borrowing Habits

It’s also important to establish healthy borrowing habits when trying to build credit. Never borrow the full amount that you are able to. In fact, it’s best to only borrow a very small amount and have a plan in advance for how you’ll pay it off. At the end of each month, pay off your credit card balance in full. It’s a common misconception that you should leave a small balance from month to month. The truth is that your credit score will be higher if you pay off the full amount monthly. After a divorce, you’ll need to have a healthy credit history that is all your own. That way, you’ll be able to start your new life, including renting a new place or affording your own vehicle. It’s important to build credit early so that you have a long-established credit history. Do this by opening a credit card, co-signing a card, or getting a secured card. Establish healthy spending habits so that you stay within your budget. And finally, establish healthy borrowing habits and pay off your credit card balance every month. Having a solid credit history will give you the financial independence you need to start your new post-divorce life right on the right foot.

How-to Identify Financial Abuse in a Relationship

Posted on by Robert J. Reeves

When you think of domestic violence and abuse, you probably think of physical and verbal abuse. However, there are many forms of abuse. Oftentimes, financial abuse is overlooked. According to a study by the Centers for Financial Security, 99% of domestic violence cases also involved financial abuse. In fact, it is often the first sign of dating violence and domestic abuse. Learn the signs of financial abuse in a relationship so that you can protect yourself.

How-to Identify Financial Abuse in a Relationship: Knowing the Signs

What is Financial Abuse?

Financial abuse can vary from situation to situation. There is no one perfect example of it. However, it does involve controlling someone’s ability to get, use, and maintain financial resources. The victims may even be prevented from working so that they are unable to make or access money for themselves. In addition, the victims of financial abuse in a relationship may have their own money stolen or limited by their abuser. If the victim does have access to money, they may have to account for any of it that they use.

Look for Signs of Abuse

While every situation is different, there are certain things you can pay attention to. First, abusers may use or controls the money you have earned or saved. Examples of this include using your money or credit cards for their own benefit without asking. They may also ask to borrow money from you and never repay it. Also, they may ruin your credit by charging things to your account and not paying them off. Another sign of financial abuse in a relationship is if they have a double standard when it comes to spending. For example, they may spend money on entertainment, dining out, and clothing but criticize you when you make similar purchases

They may start to control where you can or can not work, and may even make you quit your job. In addition, they may actually try to sabotage your job. It is possible for them to go as far as hiding your car keys or removing your car battery so that you can not show up to work. These are only just a few of the signs of financial abuse, but there are many more.

Get Help

If you or someone you know is a victim of financial abuse in a relationship, get help right away. Call a counselor, advocate, or religious leader. Remember that financial abuse is not something that gets better with time. Oftentimes, it can actually end up leading to other types of abuse. You can also call the National Domestic Violence Hotline at 1-800-799-7233 for confidential assistance from trained professionals. Do not wait until it is too late to get help.

How-to Work with a Financial Advisor During Divorce

Posted on by Robert J. Reeves

Divorce can be very difficult on your financial situation. If you relied on dual-incomes to make ends meet, or your partner was the only one who worked, this can be especially challenging. Divorce may force you to change your lifestyle and spending habits. If you find finances to be an unpleasant and overwhelming thing to think about, you are in luck. Financial advisors are professionals that specialize in helping people with their finances. Learn how to work with a financial advisor during divorce.

How-to Work with a Financial Advisor During Divorce: Manage Your Finances

Financial Goals

Financial planners and advisors can help you get on track and work towards the goals you want to achieve. Unfortunately, according to a study, only 5% of women work with a financial advisor during divorce. However, these professionals can be as asset as part of a divorce team. In fact, 61% of women who did not use a financial planner wish that they would have worked with one during their divorce.

If you have not already, it is good to sit down and figure out your financial goals. Thinking these through will help you be able to work towards reaching your goals. Some good financial goals include paying off your debt, having a comfortable retirement, and saving for an emergency fund. Others include being able to buy a new home, creating another income source, or building wealth through investments.

Benefits

One of the benefits of using a financial planner is that they can help you evaluate your lifestyle. They will help you take a hard look at your finances both before and after the divorce. This will be helpful for even looking at different things like covering expenses, buying insurance, creating a budget, and paying bills.

Another benefit of working with a financial advisor during divorce is that they can help you look at your assets. This will include hidden gems you may not have remembered, and which assets to fight for during your divorce. Consider things like jewelry, investments, college funds and retirement accounts. The financial advisor will be able to determine what is worth asking for and also set up a plan to help you achieve financial freedom.

Although this is an underutilized resource, working with a financial advisor during divorce is a smart move. They will help you to be able to start off on the right track during and after your divorce. You will be glad they were part of your divorce team.

Pets in a Divorce: Who Gets Them?

Posted on by Robert J. Reeves

Since pets are like children, how do you determine who gets the pets in divorce? This is something that pet owners struggle with during a divorce. This is especially true if both spouses are very fond of the pets. This can be a tricky decision since emotions will be involved.

Pets in Divorce: How to Decide

Housing

Divorce typically leads to one or both spouses buying a new house or moving. One way to help you decide who gets the pets in divorce is to consider your housing situation. For example, if one person will have a small apartment, they may not have as much room for a pet. On the other hand, if one spouse will be living in a larger house with a big yard and fence, that may be a better situation for a dog.

Some apartments or rental situations do not allow for certain types of animals to live there. Make sure that you check those rules before making the decision on who gets to take the animals.

Moving Abroad

If one spouse is moving abroad, this could have an impact on who gets the pets in divorce. There are many rules and regulations about bringing pets into other countries. A pet may have to go through a lengthy quarantine or vaccination process in order to move abroad.

Caretaker

Take a good long look at who has been the pet’s primary caretaker over the years. This may have been a shared effort. However, there may have been one spouse who always took the pet to the vet or bought pet food. In the same way, there may have been someone who did more of walking the dog or scooping the kitty litter. Perhaps there is someone who the pet seems to bond better with or has spent more time with the animal. If so, this could be a deciding factor of who gets the pets in divorce.

Pet’s Best Interest

While deciding who gets the pets in divorce, try and have an objective look at what would be best for your pet. Try and keep your feelings out of it. Which living situation would be more comfortable for your pet? Or which spouse would take better care of the pet?

Emotional Consequences

If you end up being the one who ends up getting the pets in divorce, don’t rub it in. Be mindful and respectful of the other spouse’s feelings. On the other hand, the spouse who does not get the pet may feel heartbroken at the loss. There will likely be a grief process. Talk to a therapist or a friend if needed. Keep yourself busy.

Another option is to eventually consider adopting another animal. However, it may be best to take some time to process your emotions first. Don’t just jump into something. A good interim step would be to volunteer at a pet shelter or foster a pet.

Credit Cards During Divorce: Their Impact

Posted on by Robert J. Reeves

With how expensive divorce is, you don’t want to add more costs than you need to. That means you should be careful with your credit cards during divorce. While they can be useful, you also need to make sure they don’t hurt your finances in the process…

Credit Cards During Divorce

Watch your accounts

Before using any credit cards during divorce, you should first make sure the accounts are secure. Many couples like to open up joint accounts, or joint cards. While that might’ve been fine before, it could now be an issue. After all, you don’t want to be accountable for debt that isn’t yours.

If you have a joint account, then you can try to see if you can make it into a sole account. Still, it may just be safer to have the account closed, and then open up a new one. You don’t want a vindictive ex trying to access a joint account and try to hurt you financially.

Use them sparingly

Another good idea is the use credit cards during divorce in a sparring manner. It can be tempting to use them due to the more-flexible payment schedule. However, you might be setting yourself for a big debt issue. Instead, try to limit when you use them.

A good idea is to use them for things you’d have to buy anyways. For example, that may include things like gas or groceries. That way, not only do you keep your payments low, but you can also work on boosting your credit score at the same time.

Make payments on time

Be sure you make your payments on time when using credit cards during divorce. Late payments will mean late fees, and an increase on your interest rate. Eventually, if you fall behind on a lot of payments, your credit score is going to take a serious hit.

It might be helpful to set up automated payments for your credit card bills. Many banks will let you set it up so your payments can be made every month on time. That way, you’ll have one less thing to worry about.

Post-Divorce Financials: Making Progress

Posted on by Robert J. Reeves

Divorce doesn’t just take a toll on your emotions. It can also be pretty draining financially as well. Often times, it’s hard for people to adjust to their post-divorce financials. However, it is possible to begin thriving again after your divorce…

Post-Divorce Financials: Survive and Thrive

Make a budget

Budgeting is an important part of your post-divorce financials. After all, you might find yourself with lesser cash flow after your divorce. Going from a dual-income to a single income household will mean you’ll have to make some changes.

It helps to create a spreadsheet and measure out your expenses versus your income. Then you can see what you can cut back on if you need to save some money. Sticking to a budget will help you avoid spending money on things you don’t really need in the long run.

Adjust your routine

Making slight changes to your routine can actually have a large impact on your post-divorce financials. You might be used to a certain way of doing things before your divorce. However, it might be wise to make some changes afterwards to save you some money.

For example, lets say you usually get a coffee in the morning from a coffee shop that costs $4. Making your own coffee at home instead could send up saving you about $30 a week, and up to $125 a month! Having that extra bit of money saved can really help you get your finances together after a divorce. Try to find the things in your routine that you can temporarily go without to save that extra bit of money.

Invest in your future

A person’s earnings can take quite a hit after a divorce. For example, women can have their earnings lowered by up to 37%! That’s why it’s important for your post-divorce financials that you plan ahead for your future.
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You might want to think about ways you can expand or increase your career opportunities. This could mean getting new certifications or taking some higher education. Many community colleges offer more affordable options than their university counterparts.

Getting a better grasp over your post-divorce financials can actually be quite empowering. You can take direct action in reestablishing your post-divorce life one day at a time with a good budget and a good plan for the future.

Financial Mistakes

Posted on by Robert J. Reeves

When you get a divorce, a lot of things become new. You’re learning how to cook for one less person and you’re tackling weekend projects solo. It’s usually not a problem adapting to things post-divorce, but is everything that easy? Financial mistakes happen often after divorce. Because of the new situation, many are not prepared. Below, we’ll discuss the most common financial mistakes those new to divorce make.

Financial Mistakes During Divorce

Equal Division of Property

Sometimes it is not as easy as simply cutting it down the middle. When dividing up assets, make sure you keep in mind the residual values and not just current market values. Common financial mistakes often include divisions of property because of their complexity.

For example, you and your ex spouse may own two properties that have a $200,000 value. One is the family home and the other is a rental property. Each spouse getting one of those homes would not be equal because the rental property will continue to generate income. Remember these aspects when dividing property and other money-generating assets.

Expenses

Expenses can hit a newly single person like a ton of bricks. Don’t let your expenses be one of your post-divorce financial mistakes! Take the time to understand how much you make each month, after taxes. After figuring this out, create a budget and stick to it. After you’ve adjusted to a single income, start planning for the future. Remember that most expenses grow, not lessen, as time goes on.

Child Support Reliance

Relying on child support means relying on your former spouse to make money. If you have concerns about their finances, make sure you avoid the financial mistakes associated with child support. Take the necessary actions to secure this piece of income. 

​Additionally, the court will allow you to request disability or life insurance for your ex. Doing so will insure that you are financially secure should a catastrophe happen. Keep in mind that people can cancel a policy at any time. If you are worried about this happening, you can request a court order for your ex-spouse to make the appropriate payments.