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How may I prepare for my post-divorce financial needs?

On Behalf of | Mar 15, 2022 | Divorce

A divorce could bring about a significant change to your budget when you leave behind a two-earner income and become a single-income household. To begin separating your finances from your soon-to-be ex-spouse, GOBankingRates recommends establishing new single-owner bank and credit card accounts.

Tennessee’s equitable distribution statutes require dividing marital assets fairly. Individuals may, however, keep what the courts recognize as their separate property. Newly opened bank accounts could, however, require proof that they do not reflect shared marital assets. A judge may otherwise divide those accounts with your ex-spouse.

Why would I need to open my own credit card accounts?

If you opened joint credit cards with your spouse, Tennessee’s divorce laws generally require dividing the balances fairly. As noted by The Ascent, some individuals choose to apply for their own credit cards and then request a balance transfer of the amount they owe on a shared card.

By closing your joint accounts, you may also work toward improving your personal credit score. After your divorce, you may need to apply for a new mortgage or refinance an existing one to continue living in a previously shared home. Building and maintaining good credit could help you qualify for a new home loan.

How may I plan for a budget that accommodates a single-income household?

A divorce could require dividing assets such as a spouse’s income and retirement plan. A judge may also award spousal or child support payments. You could begin to calculate your new single-person monthly income by negotiating issues such as support payments and retirement funds before your divorce.

Tennessee residents could plan ahead to find themselves better prepared for their post-divorce lives. Effectively negotiating financial issues may result in a settlement that leaves you with a comfortable budget.