The coronavirus pandemic has dealt a serious blow to many marriages in the U.S.
Are you considering getting a divorce? Maybe you’ve already made that ‘what-if’ call to an attorney to feel things out?
If you’re getting to the more serious stages, and are starting to think about safeguarding your financial future, it may be time to consider making a few moves - like these:
Take inventory of your assets & liabilities
What do your assets, which include everything from cash, savings accounts, checking accounts, stocks, bonds, mutual funds and more, look like?
These assets are going to be more important to the non-working or lower-income spouse, and that may very well be you.
And there are varying tax consequences to think about as well.
Do you have any loans in your name? Credit card debt? How much debt? And whose names are the cards in? Does the non-debtor spouse have charging privileges on the cards?
Knowing both what you own and what you owe is an extremely important part of the process.
Consider your income and expenses
Not only is the process of divorce costly, but your finances will likely be drastically different once the process is complete.
That’s why you need to take inventory of what’s coming in the door, and what’s going out.
Keep in mind that after you’re divorced, you may have significantly less income. You may also have twice as many expenses as a single household becomes two separate ones.
Start to think about where you might be able to cut back following divorce. How can you begin saving now? What could you live without post-divorce?
Meet with a financial professional
You might have well-meaning relatives and friends willing to give you advice about money, but there is no substitute for professional advice.
When you’re ready to meet with a financial coach or advisor, schedule that meeting.
A financial professional will provide you with a more complete financial picture and this will help alleviate your stress level during this challenging period.