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Important steps to protect your finances during divorce

On Behalf of | Dec 12, 2022 | Blog, Divorce

Going through a divorce in New Jersey is stressful, but you need to be proactive to protect yourself. One of your biggest priorities involves your finances. Take these steps to protect your money during a divorce.

Do an inventory of your assets

You will want to separate your assets from your spouse’s and do an inventory of them. Establishing what’s considered your own separate property compared with jointly-held marital assets can help you get an idea of where you stand. It could help when you and your spouse have to deal with the property division part of your divorce settlement.

Get a copy of your credit report

During a divorce, it’s possible for one spouse to rack up credit card debt out of revenge or simply because they’re irresponsible. Regardless, you should get a copy of your credit report and study it for anything odd. Check for anything that might be a mistake and follow up on it. If you suspect your spouse of infidelity, there may be strange things on your credit report. Anything that’s just an error should be reported to the credit bureaus to be removed.

Separate your finances

Take immediate action to separate your finances by creating your own accounts. During the divorce, your spouse might get their hands on anything jointly held such as credit cards or cash. Close any joint accounts and open your own to establish or strengthen your credit score. Open savings and checking accounts and store most of your cash in the former as a decent emergency fund.

Learn to budget

Your expenses will change after the divorce, which requires learning to budget. You’ll no longer have the benefit of your combined income with your spouse. (this assumes all houses are joint income which is not always the case) Adjust how much you spend and downsize if necessary.

These are important ways to protect yourself financially while going through a divorce. Healthy financial circumstances are critical to rebuilding your life after your marriage ends.