Divorce and your finances

On Behalf of | Apr 26, 2022 | Divorce |

Going through a divorce in West Virginia means a lot of stress and big decisions. You will also have to take steps to protect your finances. Here are things you might want to do regarding money.

Figure out your finances

Go through your finances to see how much money you actually have. Knowing this can help you better prepare for protecting your money during your divorce. You should include everything from bank accounts, mutual funds, credit card bills and property you own.

You will also want to take note of debts that are in your name only. The amount should be factored in and subtracted from your money.

Close your joint accounts

Close any joint accounts held by you and your spouse. This is especially important if you’re going through a contentious divorce and your spouse could rack up debt that you might end up responsible for paying.

Open your own finance accounts

Open bank and credit accounts that are solely in your name. If you have only had joint credit cards with your spouse, this is a good time to start fresh and establish credit in your own name.

Keep a decent savings account that can earn interest. Open a checking account and deposit at least $1,000 in it to start. You can gradually add more if you have several bills to pay.

Create an emergency fund

Due to your impending divorce, it’s wise to create an emergency fund as well. You can do this by opening a separate savings account that you use strictly for emergencies. This should be separate from your regular savings account. You should add money to it at least once a month. Often, $100 is sufficient for an emergency fund.

Update your will and other legal documents

If you have a will, you probably have your spouse named as your beneficiary. Update your will and other legal documents that name them. With the divorce, you will want to have someone else inherit your property and assets.

Taking immediate action to protect your finances during a divorce is important. You will gain peace of mind from your actions.

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