Money troubles stress relationships and no doubt contribute to a significant percentage of break ups. Divorce can take a toll on your career earning potential, extend the time you have until retirement and force you to take a tax hit. Even relatively low-cost divorces can cost thousands of dollars, and you and your former spouse must each adjust to living on a single income. Obviously, the challenges multiply when children are involved. Follow these tips to manage your finances and recover after a divorce in Minnesota:
- Tackle the Big Stuff First
Think of money management after divorce like triage—the first thing you should do is make necessary changes in your financial accounts. Close anything that you used to share with your partner, and notify remaining accounts of a change in address, if applicable. In addition, change beneficiary information on life insurance policies and retirement accounts.
- Do Take Care of Your Credit
You’ll need good credit to obtain housing, a car and other loans. If you’ve never had a credit card before, now is the time to open one. Build your credit over time—carefully. Pay off your balance in full each month, and never spend outside your means.
- Don’t Bite Off More Than You Can Chew
During your marriage, you may have become accustomed to a certain standard of living. Unfortunately, divorce changes “normal.” Don’t sign a lease on a luxury apartment you can’t afford just because you think you deserve it. Make a list of your income and expenses, and make realistic choices. Leave a cushion each month for unexpected expenses, such as car repair or medical bills.
Divorce can bring a lot of changes to your life, especially financial ones. Our experienced Minnesota family law attorneys can help you strategize and obtain a fair outcome. Call us now to get useful insight.