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Financial tips for people who are recently divorced, Part 2

Divorce entails significant financial stress from bankruptcy to reduced credit ratings. You will have to confront these issues, and the sooner you do, the better. As discussed in a previous post, don't act like your financial situation is unchanged. Your financial situation is changed, and the sooner you confront it, the sooner you can overcome any potential issues.

Depending on your situation, it may make sense to apply for a new credit card. New credit cards are especially important if you do not have a large reserve of cash and marginal credit. But these are short-term fixes and for emergencies only, you can't rely on them for all expenses.

Next, speak to your insurance broker. If you have homeowner's insurance, you will want to go over the assets that are covered by the policy and remove those that were sold or given to your spouse. You need to get a handle on your finances as soon as possible. The last thing you need to do is to pay for insurance on assets which you no longer possess, which is an easy way to lose money.

If you were not the spouse that handled the investments, then begin educating yourself as soon as possible. It is imperative that you understand your various stocks, bonds, and mutual funds. You will need to become accustomed to managing your investments.

Consider moving out of your house. Leaving the family home entails more than financial decisions but keep in mind that homes are not very liquid, and they can be very expensive. This is a quick way to generate some liquidity, move on from your past life and reduce expenses.

Divorce, as you can see, involves many different aspects of your life. You may want to speak with an attorney as soon as possible to ensure that you are well prepared to handle the fallout from your divorce. Lawyers are experienced in dealing with these issues and can ensure that you have a smooth transition out of your marriage.

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5885 N. Wayne RD | The | Smith | Law Offices, P.C. | 734.729.4465

The Smith Law Offices, P.C.
5885 N. Wayne
Westland, MI 48185

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