How can you handle your finances during a divorce?

On Behalf of | Apr 16, 2021 | Divorce |

As you prepare for a divorce, your financial situation may become a major concern. How can you handle your finances responsibly, even during a divorce?

U.S. News suggests that there are several financial steps to take when preparing for a split.

Monitor all expenses

While you should monitor expenses before and after a divorce, it is important to monitor them during a divorce. Make sure that your spouse does not overspend or dip into your shared assets. Some people may try to hide assets or attempt to make abnormal purchases to reduce the chance of paying any settlements. Document any marital funds that you or your soon-to-be-ex spend.

Begin to save money

Do not overspend during a divorce. There may be a lot of unexpected costs, not to mention you split your finances in half after a divorce. This is a good time to begin saving money. While preparing for a divorce, you should set up your own bank account.

Consider retirement and social security

When a couple remains married for at least 10 years, then an ex-spouse can receive Social Security benefits on the other spouse’s record. Some couples choose to remain married until the 10-year mark when close to the 10th anniversary.

Divorce can affect your retirement accounts. If you and your spouse plan for retirement, take into consideration how the divorce might impact retirement. You may need to readjust your investment portfolio. Divorce settlements and pre-existing agreements can affect retirement accounts.

Once you finalize the divorce, make sure that you and your spouse follow all agreed upon financial decisions.