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How To Manage Your Financial Status After A Divorce

On Behalf of | Aug 23, 2011 | Divorce

Once your divorce is finalized, it will be up to you to get your finances in order. In order to become self-sufficient again, organizing your finances is very important. To get you headed in the right direction, here are some steps you should take.

First, if you have not done so already, make sure you have a credit card, checking account and savings account in your name only. This is going to help rebuild your credit score once again. Next, you will need to incorporate any aspects of your divorce decree into your financial decisions, such as paying child support. You will also need to change information on s pertaining to things such as health insurance, auto insurance, renters insurance and life insurance to reflect your individual status.

Fully understanding the process of transitioning from joint to individual financial status is very important. This will help you avoid making bad financial decisions. There are many options available for better educating yourself on this process. These include taking a course online or at the local university; reading a book; or checking out one of the many websites on the Internet that feature a wealth of helpful resources on how to better understand your finances. You can also consult with your divorce attorney, who is typically knowledgeable about these issues, or may be able to refer you to another attorney within his/her firm to help you.

Now that you are handling your own finances, you will also want to audit yourself. Working with an attorney or CPA to get your taxes in order will ensure that any outstanding tax returns get filed. During tax time, it is also wise to seek the advice of a financial expert. This allows you to gain a better understanding of your overall financial situation as well as receive some guidance on ways to better manage your money.

Lastly, you need to create a long-term financial plan. This strategy will help you reach your long-term financial goals. Depending on your individual situation, you may want to seek financial assistance in crafting this plan as well.

Getting a divorce can create financial problems. But if you prepare yourself properly, you can get your finances back in order and avoid future financial difficulty.