When women decide to get a divorce, one of the elements they have to consider is their finances. Many couples have joint finances and it is important for women to make sure they disentangle their finances from their spouse. It is also important for women to make sure they will be in a good financial situation during and after the divorce.
Close accounts
When women prepare to be financially independent, it is important for them to set up their own accounts. NerdWallet says it is a good idea to close joint checking and savings accounts. Different financial institutions have their own practices concerning the closing of joint accounts. Because of this, some women may need to have their spouses present when they close the account. If people are still able to be amicable with their spouse, it may be a good idea for couples to close accounts together, regardless of their bank’s requirements. This can help ensure that both people understand the way they are dividing the money. Additionally, it is important for women to open their own bank account. They may want to do this before closing the joint account so they can transfer their share of the assets straight into their new account.
Be Informed
It is also important for women to understand their current financial situation. According to NerdWallet, it is a good idea for women to look over their financial records so they know exactly how they stand financially. These records include the statements for investment accounts, bank accounts and retirement accounts. Women may also want to look at their income tax returns and credit card statements. Looking at all of these documents can help women understand which assets they might receive after the divorce. These documents can also help women track where all of their money has been going so they can plan for their financial future. Additionally, it is a good idea for women to estimate their monthly expenses so they know whether their current salary will cover everything.
Take it slow
As women plan for their financial independence, it is important for them to remember to take things slowly. Some women may want to look at new homes or change the beneficiaries on their life insurance. However, it may be best not to make these kinds of large decisions. Divorce brings much upheaval into people’s lives, and it may be a good idea if women let their circumstances settle before they make large financial decisions.