Divorce is already a difficult time for many couples but overspending by a spouse during a divorce can make matters even worse. Overspending can leave the other spouse feeling financially vulnerable and may impact the overall outcome of the divorce settlement. In fact, divorce due to overspending by a spouse is a common cause for divorce in the first place. Here are some tips on managing divorce overspending by your spouse.
Take inventory of your finances
Before you can effectively deal with your spouse overspending, you need to understand your current financial situation. Gather all your financial documents, including bank statements, credit card bills, and tax returns. You should also make a list of all assets and liabilities. Just going through the process of making this list will give you a deeper understanding of the financial circumstances you must address during and after the divorce proceedings.
Notify your bank and creditors
If you suspect that your spouse may be overspending, notify your bank and creditors immediately. You may be able to close joint accounts or freeze credit cards to prevent further spending. This step may also help protect your credit score.
Documentation is critical in a divorce, especially when it comes to finances. Keep detailed records of all your financial transactions, including any withdrawals, purchases, or transfers made by your spouse. You should also make copies of all relevant financial documents, such as bank statements and credit card bills.
Consider legal action
If your spouse’s overspending is causing significant financial harm, you may need to take legal action. You may obtain a court order to prevent your spouse from accessing joint accounts or making large purchases without your consent. A divorce attorney can help you navigate the legal process and protect your financial interests.
Set financial boundaries
While you are going through a divorce, it is essential to set financial boundaries with your spouse especially if the initiation of the divorce is due to overspending in the first place. This may involve agreeing on a budget for shared expenses or dividing assets in a fair and equitable manner. If your spouse continues to overspend, you may need to limit communication with them to avoid financial conflict.
Seek professional help
Divorce can be an emotional and stressful time, and overspending by a spouse can make things harder for you. Overspending by a spouse during a divorce can have significant financial consequences. It may be helpful to seek the guidance of a financial planner to help mitigate the damage and start getting your finances back on the right track.
Purposeful Wealth Advisors has a reputation for being a top-quality Illinois divorce financial planner that you can depend on to help you develop a personal financial plan that works for you and your family. Our professionals are highly knowledgeable and experienced in dealing with the financial aspects of a divorce. Get in touch with one of our professional financial advisors now to put your wealth management goals back on track.