Going through a divorce throws every aspect of your life up in the air. In a time of such emotional upheaval, thinking about your finances is often the last thing you have the mental and emotional energy to do. Though doing so, with the help and support of financial professionals, can help save you money and nip financial difficulties in the bud before they progress further. Fox Symes are respected, leading financial advisors who can help you to put the pieces back together in the aftermath of your divorce and set you up for greater financial stability and comfort into the future. Start small, with doing something akin to a financial stock take, and then slowly work your way to addressing the bigger issues. While it may seem grim and joyless to do so, you’re helping yourself to avoid much stress later on. Here are some tips to consider in reestablishing yourself:
Where Do You Stand?
If you’ve experienced a cut in income as a result of the divorce, examine the areas in which you’re unnecessarily losing cash and the ways that you can maximise your income. One way to stem cash loss is refinancing your house, which can save you thousands during the life of your loan. Even a small reduction in your interest rate can make a significant improvement on your available income.
Do a financial stock take, listing all the assets and debts which are either yours, or joint between you and your former partner. While rationalising these things, also note down the date of your separation: you need to prove that you have been separated for at least twelve months in order to apply for a divorce.
Update Your Details
Take this opportunity to update documentation and accounts that share your names. Contact your bank to close off joint accounts and set up a separate account for your money that your partner can’t access. If you rent a house, contact your agent to remove either your or your former partner’s name from the lease. If your partner causes any damage to the property in your absence you will be liable if your name is still on the lease.
Seek Legal Guidance
You don’t lose your right to a share of a property if you leave the house: seek legal advice as early as possible so as to understand your rights and obligations, particularly relating to matters such as shared property.
Make a Plan
If your partner was the one who managed the money, make a visit to a financial advisor or accountant to help you organise ways to use, maximise and protect your money, and familiarise you with managing your own finances. Get all your paperwork that relate to utility bills, investments, deeds, tax records, insurance policies and all other financial miscellanea in the one place: getting yourself a new desk and filing cabinet will give you a sense of physical and visual focus.
If you do find yourself in the unfortunate position of financial hardship as a result of a divorce, you may find the Fox Symes blog a useful resource. You’ll find a range of articles full of money saving hints and tips that can save you thousands over the course of the year.