Any person going through a divorce may find it to be a difficult and emotional period. However, when it comes to money, things can get even trickier. Divorce involves important financial management difficulties, and poor financial management can have serious consequences.
This article will cover the significance of creating a financial plan, managing finances in divorce, and consulting a financial expert or a trustworthy attorney to safeguard your financial future.
Importance of Managing Your Finances in a Divorce
The financial impact of divorce can be devastating if not appropriately managed. As a result, it’s critical to take charge of your finances when going through a divorce.
Start by gathering all required financial documents, such as tax returns, credit card statements, bank statements, and loan documents. You can then decide how to proceed after fully comprehending your present financial status.
Divorce can also impact your credit score, especially if you and your spouse have joint accounts, so it’s vital to be aware of this. Your credit score can suffer if your partner doesn’t pay their share of joint bills. Therefore, it’s wise to terminate joint accounts and start new individual accounts as soon as possible. By doing this, you can safeguard your credit rating and make sure that you are not held liable for your spouse’s debts.
Create a Financial Plan
Creating a financial plan is an essential aspect of managing your finances during a divorce. A financial plan will help you determine your current expenses, income, and assets. It will also help you determine your future financial goals and how to achieve them.
Start by creating a budget. You need to understand your current expenses and determine if you need to cut back on any expenses. Be sure to determine your income and assets to help you plan your expenses.
Another crucial aspect of crafting a financial plan is to determine your financial goals. You need to determine your short-term and long-term financial goals and how to achieve them. It is also a good idea to seek the services of a financial advisor to help you create a comprehensive financial plan that will help you achieve your goals.
Talk to a Financial Advisor
Getting trusted legal advice or collaborating with a financial advisor is crucial when managing your finances during a divorce.
A divorce attorney will help you understand your legal rights and obligations during a divorce. They will also help you negotiate a fair settlement and ensure that your financial interests are protected.
Meanwhile, collaborating with a financial advisor will help you manage your finances during a divorce. A financial advisor will help you understand your current financial situation, determine your financial goals, and create a comprehensive financial plan to reach them. They will also help you reduce your taxes, and manage your investments and assets.
Work with Us
Managing your finances during a divorce can be challenging. That’s why it’s crucial to seek the services of a professional who understands the complexities of divorce and financial management. At Purposeful Wealth Advisors, we work closely with divorce attorneys, accountants, and other dedicated professionals to arrive at comprehensive solutions for our clients.
Contact us today and let us help you manage your finances during a divorce.
Opinions expressed are those of the author and are not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
