The divorce rate is 44.2% in the USA. Financial security is hard to come by for most women through no fault of their own. With a divorce rate like this, it’s not the couple who suffers. The children and women also need to plan financially for their future.
Don’t let emotional turmoil rob you of the financial security you worked so hard to create. Your main priority during divorce should be to protect yourself and your assets in case the worst happens. A reputable family law attorney in Arizona will help protect you and inform you of your legal rights and options before and during a divorce. Read to learn how women should prepare financially for divorce.
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Prepare Your Finances
When considering a divorce, prepare your finances. Don’t rush through the process; doing so can lead to severe consequences. Here’s how to prepare your finances:
- Start budgeting. Get a sense of where your money is going by keeping track of every dollar you spend. Create a budget by dividing your expenses into rent/mortgage, transportation, groceries/supplies, utilities, entertainment, and retirement savings.
- Get organized. Keep receipts for everything you buy to track how much money is going where.
- Get advice from experts specializing in divorce finance issues, like attorneys and accountants, who can guide you, so your financial future doesn’t suffer.
Gain Control of Your Finances
You can gain control of your finances by understanding the assets, debts, and income that affect you or are in your name. It will determine if you will have enough money to live on after your divorce.
You should also carefully review all records related to your financial status. For example, look at tax returns and bank statements from the past few years to know where your money goes each month. The more information you have about your finances, the better you’ll be prepared in decision-making during divorce proceedings.
Save Money Where You Can
The average cost of divorce in the USA is $15,000 -$20,000: the average cost of raising a child today is $5,436-24,243 yearly. That’s a lot of money! But if you’re thinking about getting divorced and worried about how you’ll pay for it all, there are ways to save money where you can.
- Cut back on discretionary spending. Can you afford that new pair of shoes?
- Bundle services together. Look into getting a better deal on your cell phone plan or internet service if you have both from the same provider.
- Shop around for lower interest rates on any debt you have, student loans, car loans, and credit cards, and try to pay off those loans quickly, so they don’t cost more than they have.
- Eat at home more often.
- Take public transportation instead of driving.
Open a Personal Bank Account
A personal bank account will allow you to separate your finances from your spouse’s, making it easier to manage your own money after your separation. Opening a personal bank account can also help you feel more secure with your financial situation and ensure you have access to funds whenever needed.
Keep this account separate from any joint accounts you may have had to avoid worrying about your ex taking funds out of them after divorce proceedings have begun. Also, avoid using credit cards during this time since they can make it hard for you to keep track of how much debt you’re incurring and when payments are due.
Build Your Credit
Lenders use your FICO credit score to determine whether they’ll lend you money. Please apply for the FICO credit score and ensure it’s above 680. It’s used to buy a house, get a car loan, or rent an apartment. Getting these things done is difficult if you don’t have a good credit score.
So how do you build up your credit?
- Ensure your credit card balances are low. If they’re too high, it will negatively impact your score.
- Check that loans and mortgages are in good standing—if they aren’t, this will also affect your score.
- Pay your bills on time. It improves the credit score.
The end of a marriage has an enormous impact on finances and custody of children. Women must take control of their financial future before, during, and after divorce. More importantly, they must educate themselves about the available legal and practical options. It takes money to prepare for divorce. There are taxes and fees, legal fees, financial management fees, and accounting costs. To get all this information is from an attorney, certified divorce financial analyst, or divorce financial advisor.
