Divorce And Finances: Managing Your Finances After A Separation
May 10, 2022 | Mason Roberts
Unfortunately, separation and divorce are part of life. In the United States, statistics show that nearly 50% of marriages end in separation or divorce.
The process can be complicated, especially when finances are involved. One partner may have been the sole income source, while other married couples may have both worked and shared control of expenses, equally contributing. When a separation occurs, finances are typically separated as well in various ways.
Divorce and finances can be a tough and slow situation to work through. Here are some of the best approaches to managing finances if a marriage comes to an end.
Financial Tips After Separation
Write Out A Financial Plan
Divorce and finances are both stressful, which is why it’s important to get everything outlined and agreed upon in writing. You’ll likely need to make a new budget for yourself that reflects your new cost of living, especially after you’ve agreed upon how you will divide your assets and other items such as electronics, furniture, and vehicles.
If you shared accounts, part of your divorce and finances plan is likely to close those accounts quickly as the separation filing goes into effect. Other things to consider when writing your new budget include alimony, selling assets, and childcare.
Expect A Credit Report Shake-Up
Since your credit score relies heavily on accumulated debt, credit card usage, and payment history. Even after a separation, any debt your ex-spouse accumulates may still impact your credit report. You can work to lessen the blow by quickly resolving debt issues and ending shared financial accounts.
If you have debts in joint accounts, many family law experts recommend paying off joint account debt as quickly as possible. Your credit report should detail the accounts you need to target during a separation.
Figure Out Property
Your biggest asset is likely your home or other types of real estate holdings. That is a big part of divorce and finance to figure out. Real estate purchased during your marriage is different from such items as furniture and artwork.
Usually, state laws dictate that any property bought during a marriage is marital property. Even when you separate, both you and your spouse still pay for the property. An agreement will need to be made on what to do with such property. This usually comes during the division of assets.
The person who opts to stay in the residence may now be fully responsible for paying bills associated with the home, while one spouse may not be responsible at all for housing expenses if that’s outlined in an official divorce settlement. Both spouses may agree to sell the home and share the profit.
Factor In Expenses Related To Children
If children are involved, divorce and finances can get even more complicated. The decisions to make go beyond custody and visitation rights. Child support payments may be required which will need to be incorporated into your new budget.
Divorced couples may also need to figure out how much they will both possibly contribute to their child’s education, such as paying for private school or establishing and maintaining a college fund.
Reevaluate Your Retirement Assets
Many couples either share retirement assets or have individual retirement plans that reflect joint savings or financial goals. Within settling divorce and finances, you may have to either get a court order to divide such common plans as 401(k)s and 403(b)s.
If retirement assets are divided, it may require a revaluation of your financial status now as it relates to your retirement plans. The income needs of a married couple going into retirement can be very different from someone who is single.
Find Other Ways To Help With A Financial Emergency
Whatever nest egg you may have set up while married may drastically diminish when you’re going through a separation. If you’re facing a new financial emergency, such as a hefty hospital bill or the inability to pay your rent or mortgage, a Mississippi payday loan may be able to help.
A Mississippi payday loan, specifically designed to help with financial emergencies, is a short-term option to cover a major expense between paychecks.
Qualifying is easy. It can take as little as 30 minutes to qualify for a Mississippi payday loan of up to $400 at Mississippi Title Loans, Inc. You may qualify even if you have poor credit.
You can start the process online. Just fill out the short payday loan inquiry form on our homepage. Soon after you submit, one of our loan representatives will give you a quick call and guide you through the rest of the easy loan process.
Once you are approved, you get the cash you need the same day or the next business day.
Get Started Today
Managing your divorce and finances can be a major challenge, especially when a financial emergency strikes. To qualify for a Mississippi payday loan today start online, give us a call, or visit one of our locations near you.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.