Ten important financial steps to take after divorce
Divorce is a tough decision in life. It can bring a dramatic change in one’s financial life. Due to emotional trauma we cannot think about our financial steps during divorce process or after divorce. But you have to take some important steps to protect yourself and your future. Life is not end after divorce. You have to move forward so you can live and love again. So follow these steps and go ahead happily to your new life.
1. Gather up all your financial documents
You need to organist all financial documents like assets and liabilities including car loans, mortgage loans, credit card statement etc. Divorce is not happen in a day and you have lot of time to discuss your partner about manner of division of assets and liabilities. If you have a join loan both of you responsible to repayment the loan. So take decision who will pay which loan amount. Do not avoid it. It could hamper your credit score if there is disagreement over the repayments. You should draft a join agreement which will mention how the assets and liabilities would be divided.
2. Block credit card
Blocking credit card is very much important if you are responsible for your partner’s credit card bill. You can get fat bill if you are not block credit card. You cannot refuse to pay bill because it will hamper your credit score.
3. Close all of your joint accounts
If you have join savings accounts you should close it as soon as possible. You should consult your lawyer before withdrawing money or closing your account.
4. Foreclose all your joint deposits
Fixed deposit or other joint investments will be equally divided by join holder. Even you are not a contributor for these deposit, you also should get equal share from join deposit.
5. Open new accounts in your name
Open a new bank account in your name. You may receive half of your joint funds and you’ll need to deposit those funds in your new accounts. You will need funds for legal and other professional fees. So be prepared for it.
6. Change nominee
You should change name of nominee from insurance policies, provident fund, PPF, bank account, mutual fund and other investment.
7. Change beneficiary name
If you have written will for your partner, you should change beneficiary name from your will.
8. Disassociate from all liabilities
If you are a guarantor for any loan of your partner, remove your name as guarantor of the loan.
9. Create a new budget for you
Divorce may change your financial life. Your expense and income will change. So create a budget that suit to you.
10. Seek help from financial adviser
As your financial life has changed, you should take help from experience financial adviser for your financial planning like creating a budget, investing, retirement planning, outlining your goals and aspirations, choosing life insurance and health insurance etc.
Be happy in life. Life is not stop for any one. So go ahead and enjoy your life.