Dealing with a breakup or a divorce is difficult enough as it is. It is a physically and mentally challenging moment in life; accepting the breakup and dealing with the emotional aftermath alone can be too much for some people. With a divorce, there is also the need to handle financial and estate matters as part of the process.
Worry not, because we are here to help you. You need to know how to protect your financial interest when you are getting a divorce, and that is exactly what we are going to discuss in this article.
Get Expert Help
Getting help from experienced people is the first thing you need to do under the circumstance. As mentioned earlier, other parts of the divorce are difficult enough to handle; you don’t want accounting and tasks associated with splitting the estate to wear you down even further.
A good divorce attorney and a divorce financial analyst are two experts you need to get onboard. Your divorce attorney should be able to recommend a financial analyst – or bring analysts into the process whenever they are needed.
You need to look at the financial side of the divorce as protecting your territory. The goal is to settle matters about the estate clearly and fairly so that you don’t have unexpected things to deal with in the future from a financial standpoint.
Settle the Accounts
Before you start discussing settlements and other details, make sure all accounts are settled. Joint accounts need to be closed. Any remaining loan under both parties must be consolidated or repaid. The same can be said for unsettled checks and other financial matters.
Bankrate.com has a very good guide on how to close a joint bank account. There is no need for both parties to visit the bank to close the account, but the account needs to have zero balance before it can be closed unilaterally.
Settling accounts is a necessary step to take for two reasons. First, you do not have to worry about future obligations after the divorce. Settling estate-related matters is also a lot easier to do since there are no hidden debts or unaccounted wealth.
Establish Your Own Finance
What many people forget to do when dealing with a divorce is preparing for financial independence. You will have to take your financial matters into your own hands again after so long, so there are a few preparations to be made nonetheless.
For starters, you need to apply for a credit card so that you have a credit score under your name. This opens you up to more financing options should you need them for various purposes. Next, you need to start documenting your incomes and managing your expenses better.
Last but not least, create a monthly budget and start managing your personal finance meticulously. The separation presents a great opportunity for you to reorganize different things in life, including your personal financial state and how you manage it. With the tips we discussed in this article, protecting your financial interest during a divorce will not be difficult.