A divorce affects your life in many ways, and it includes your finances. It isn’t the most pleasant time of your life especially if you’re the one who has to lower your standard of living. The divorce already took its toll on you; you can’t let your finances worsen the situation. Here are 5 ways to rebuild your finances and improve your financial situation after a divorce:
Make a financial plan
Majority of your financial information was collected and used during the process. Now it’s time to check out these costs. You have to make adjustments based on child and spousal support. The noncustodial parent also takes note of the cost of life insurance and health care. You have to be realistic and don’t make reckless decisions. Once you have a plan, all you got to do is stick to it.
Separate all of your finances
Close all joint credit card accounts and open new ones so you can immediately start building your own credit history. The title of your home should also be changed and let the mortgage company know about the change. Even the name that reflects on utility bills must be changed. Don’t forget to update your will.
Check your insurance and get the necessary protection
Now that you’re on your own, you should protect yourself as well as your property by getting the necessary insurance. This pertains to life insurance, health insurance, auto insurance, and homeowners insurance.
Let others know about your new name
If your name will be changed after the divorce, you’ll have to get a new passport, driver’s license, and Social Security card. You also need to let your bank know about the change. Your accountant and personal lawyer should also be informed.
Obtain your credit reports
After the divorce, it’s best to let TransUnion, Equifax, and Experian know about your name change. Also, you should ask for credit reports from the three major credit bureaus. You can get a free report from each of the three every year as stated by federal law. Once you have the reports, check them closely and make sure that the file is updated and closed accounts are already noted.
Going through a divorce process is already stressful. Once everything’s been settled and the verdict is out, you initially feel relieved. Later on, you’ll realize that there’s going to be a huge change in your life. You’re now on your own. You’ve got to deal with these things all by yourself. Every person deserves a good life following a divorce. It’s only possible if you can rebuild your finances. Stick to these 5 ways and you’re on your way to enjoying life as a single without having to worry about your finances.