Financial Freedom Tips

Posts Tagged ‘Divorce’

Copyright (c) 2009 Suzy Vanstrusen

One of the harshest realities in life is divorce. It is depressing that in the US alone, one out of three marriages end in divorce. Aside from the emotional pain that comes with divorce, financial issues are also a challenge. If you’re in this situation, how can you manage your finances more effectively and refrain money problems? Here are some financial tips after your divorce that you would want to consider:

Find a new home

If moving to a new home is an issue, you need to be very careful in choosing or purchasing a new home for you and your children. Make sure that you carefully research not only on the property you’ll purchase but with the mortgage lender you will apply for as well.

Consider getting a pre-approval with home loan first because it will give you an advantage when you negotiate with a home seller. It will also help you determine the exact loan you can afford when you’re choosing prospective homes and it will save you the time in looking at homes that is out of your budget.

Be financially independent

Joint bank accounts or credit card extensions must be changed. You should open up a new statement that is yours alone. This will prevent doable problems in the future. Opening up a individualized statement is also crucial especially if you’re planning on applying for new loans.

Don’t forget to open a savings statement where you can set aside your individualized savings for you and your kids. You should have a separate savings for minor and major emergencies. Build your savings statement so that you can have enough funds to last you and your kids for at least six months in case you need to find another job or in case you get sick and unable to work.

Create a new budget system.

After your divorce, there will be some adjustments not only with your expenses but with your earnings as well. A written budget will help you keep track of your monthly income efficiently so you wont miss any of your bills and financial obligations. It will also help you cut your costs and take away unnecessary expenses from your budget.

Get an insurance policy.

Apply for an insurance policy not just for you but for your kids as well. Don’t just rely on your ex-spouse when it comes to the security of your children. You might need to get a part time job to help you with the expenses that you now have to grappling on your own. Be cautious about getting into a business without doing research on the legitimacy and reputation of the company. Keep in mind that there are a lot of home based business scams out there that can catch you off guard because of your current situation.

Get help.

When it comes to the legalities of divorce, do consult with a professional divorce lawyer. Find a credit counseling company that is reputable and legitimate as they can help you manage your finances more effectively.