After your divorce, you may be in a different financial situation than your previous lifestyle. You may be concerned about how to achieve financial independence, especially if you are the recipient of limited duration spousal support. Our Coconut Creek divorce attorney shares tips on achieving financial independence after a divorce.
Organize Your Finances
Your divorce may be a tumultuous time financially. If you are used to a dual-income lifestyle or did not work to care for your children or other loved ones, you may not be used to your new financial situation. A deep understanding of your financial standing can help you prepare for financial independence.
Closing Shared Bank Accounts
If you share bank accounts with your spouse, you will need to close the bank accounts after the assets within them are split. Your portion of the assets will need to relocate to a new account, one where you do not share banking credentials or access with your spouse. After you receive your portion of the bank account, you will need to close the joint account, so it can no longer be used.
If you shared credit cards with your spouse, you will need to undergo a similar process. This may include removing your spouse as an authorized user and closing credit card accounts in both of your names. While you may be concerned about what this may do to your credit score, closing the credit cards itself will not harm your score, but the change in your available credit to used credit ratio may impact your score.
Opening New Private Accounts
If you do not have separate bank accounts from your spouse, you should open a new checking and savings account for solely your access and use. You can opt to use the same bank as your joint accounts or move to the bank of your choice. By creating a separate account for your individual use, you have a place where you can receive your portion of divided funds from your joint accounts, which is necessary for the division of assets process.
Meet a Financial Advisor
When working with your finances, you may need an expert to help you better understand your situation. Meeting a financial advisor, either through your bank or a private financial institution, can help you review your bank accounts and assets and explain where you stand.
A financial advisor can help you:
- Review your assets and bank accounts,
- Understand your debt and how to repay it,
- Help you put money aside into savings accounts for a home mortgage, your children’s college educations, and other goals you may have,
- Review your monthly spousal support payments and help you understand when they may end, and
- Help you create an annual or monthly budget to reach your financial goals.
If this is your first time managing money, you may be concerned about how to live a worthwhile lifestyle while still living within your financial limits.
If budgeting is unfamiliar to you, this may be a large step in achieving your financial goals, especially post-divorce. Preparing a budget can help you understand where you spend your money monthly and how you can prepare to save. When building your budget, you may wish to eat out less, spend less on items unnecessary for daily life, cut down on online purchases, or remove subscriptions, such as television subscriptions, meal kit subscriptions, or monthly subscription boxes.
Coconut Creek Divorce Attorney
At The Law Offices of Jonny Kousa, P.L., our divorce attorney understands your divorce may prompt large changes in your life, especially financially. We are experienced in advocating for clients in the asset division and support awarding processes, helping our clients prepare financially for their next chapter.
Are you divorcing and trying to seek financial freedom? Schedule a free consultation with our divorce attorney today by calling (954) 626-8071 or filling out our online contact form.