A divorce is painful, that's a given. And anybody who has gone through a divorce would admit that if there were anything that would have kept their marriages off a divorce court, they would have readily done it. Divorce obviously affects the children in the union negatively. But apart from that, it affects the couple emotionally, psychologically, mentally and of course, financially.
Yes, divorce hurts the finance and leaves too many loopholes to be filled. Everyone wants a break after a drawn out litigation battle; a break from lawyers and dates and paperwork. But there are still a few things to be done if you want to breathe easy after a divorce.
Life is never really the same after one is freshly single and there will always be those things that remind you of the good times and the bad times you had with your ex, moving on becomes a little difficult, but move on you must! So here are a few tips that could be very helpful to get you to move on while securing your finance as well:
1. Revisit Your Insurance Broker
Contact your insurance broker and update your umbrella liability coverage. Screen Your list of assets scheduled on your homeowner's policy and screen out the things your spouse received in the divorce also screen them out if they were sold. There is no sense in paying insurance premiums for assets you do not own.
2. Apply for a new credit card
Depending on your situation, it may make sense to apply for new credit cards before you cancel joint accounts. Especially if you have marginal credit and don't have an emergency reserve of cash.
While credit cards are generally not very good financial helpers, comparing its downsides to what can happen in the short-term if someone does not have sufficient funds to cover their core bills can make it not only desirable, but a priority. A Credit card can provide a temporary bridge fund for you while you get on your feet after a divorce.
Again, you need to make a list of the accounts you had while married, and seek to replace them as soon as possible; Savings accounts, Investment accounts etc.
3. Re-title Your Assets
If you owned any assets jointly with your spouse and that asset was retained by you or received by you in the divorce settlement then you need to re-title them. For instance if you owned your house in a trust with your spouse, you'll want to re-title it in your name personally or in the name of a new living trust you create.
4. Get familiar with Your Investments
This will apply where your spouse handled the investing, there may now be things you own that you aren't familiar with or that perhaps aren't right for you.
You need to do a deep analysis of all your investments to see if it is prudent and beneficial to you financially at the present. Sell off investments that will not help you and retain those that are potentially or presently rewarding.
5. Sell Off Some Valuables and Move On
This tip is reasonable not just because it makes financial sense, but because it also helps you move on while securing your financial future. There might be a few things that you owned jointly that you may need to sell off even if they have or had sentimental value. Resources like Worthy.com makes selling off such valuables more reasonable by giving you a financial advantage.
There are also a few suggestions about what to do with your engagement ring after a divorce for instance, especially if it is the kind of ring either of the Kardashian sisters received which was worth thousands of dollars! You may need to think of selling it and moving on.
6. Consider Moving
Moving from a family house is often an emotional decision, but deciding not to move on the basis of sentiment is "...often the beginning of a very difficult situation because it costs a lot of money and the house is not liquid," says Pilz.
Since you'll have to pay for this home with one person's income, if your budget's tight, moving to a less expensive home or renting may be a good option to consider. You need to approach it as an investment asset, and you need to make decisions from that context as well
7. Get a new everything
In addition to getting a new account, you might need to make a number of other changes. Divorces can mess up your finance and you will need to re-evaluate your finances in general; what comes in and goes out and what are assets and liabilities, what taxes you now qualify to pay.
You may need to change your will, get a new filing system, and perhaps even get a new name if that will help you sleep better at night.
The point is that a divorce is a major (and sometimes devastating) life change and the earlier and faster you can get back up and on track, the better for you.