Preparing for a divorce involves a large variety of factors, from the question of child custody to creating new living arrangements, but have you considered how your finances will change once you begin the process? U.S. News notes that the divorce itself usually costs more than most couples anticipate, no matter if the split is amicable or not.
Once you anticipate divorce, there are a few financial steps you may want to take to protect yourself before, during and after your divorce that may help protect your future.
Organize your finances
Gone are the days where one spouse handled the money and debt while his or her partner remained unaware of the household finances, as most couples now manage their money together. However, if you want to plan for a divorce and have not yet revealed your intentions to your spouse, you may want to begin by sorting out what you owe together, which funds you can keep separate and what it might cost you to live independently. This may help you to better understand your needs once the divorce begins.
Review your credit
Your credit score can have a dramatic impact on your ability to obtain loans, credit cards and rentals. As your divorce proceeds, review your credit by ordering a report from one of the three main reporting companies:
Once you review the report, note any errors or unfamiliar charges so you can resolve them before your divorce becomes official.
You may also want to consider what financial commitments you had planned in the near future before you announce your intent to divorce. Once your divorce is complete, tracking alimony and child support payments can help you gain financial stability and freedom.