Effective And Affordable Solutions
  1. Home
  2.  » 
  3. Divorce
  4.  » How to survive a divorce financially

How to survive a divorce financially

| May 7, 2021 | Divorce

You may have been married to your spouse for decades. Unfortunately, not every marriage in Tucson is meant to last, and you may find yourself in a situation where you are divorcing and left surviving on a single income rather than a dual one. This can be especially stressful if your ex was the main breadwinner in the household. However, getting divorced does not have to destroy your finances. The following are some tips on how to survive a divorce financially.

Develop a budget for your new normal

During your marriage, you and your spouse may have shared many household expenses, such as the mortgage, utilities, insurance, groceries, auto loans and other miscellaneous bills. These same expenses will have to be accounted for once you are single and living on your old. Identifying your immediate needs and developing a budget around these needs can give a person the financial head start they need during a divorce.

Aim for a fair property division settlement

It would be nice if couples immediately agreed in who gets what property in the event of a divorce, but this often does not happen. Negotiations will need to be made, and some assets are more liquid than others. Other assets require upkeep and maintenance. Certain assets also have tax implications. It is important to keep liquidity, taxes and the costs of maintaining an asset in mind, to ensure you can afford that asset post-divorce.

Try to pay off debt before the ink dries on your divorce decree

Most married couples share joint debts, such as credit card debt, a mortgage or an auto loan. If it is at all possible to pay off these debts before finalizing your divorce, this could be in the best financial interests of both you and your spouse. Any defaults could impact your credit score.

Update your financial documents

Once you are divorced you will need to update certain financial documents. Titles to the home and automobiles should be transferred to the spouse who owns them. You will want to remove your ex as an authorized user on any credit cards. You will need to open a bank account that is in your name only. Finally, you will want to remove your ex as a beneficiary on your retirement accounts and life insurance policies.

Learn more about divorce in Tucson

It is possible to get through a divorce with your finances intact. It just takes some careful planning and forethought. This post is for educational purposes only and does not contain legal advice. Those who want to learn more about divorce in Tucson may find our firm’s website to be a useful resource.

Archives