Divorce, Debt, and Finances

Getting a divorce can significantly change your financial situation, and once you are divorced, you’ll need to reassess your finances.

It would be wise to ensure your financial future is as secure as it can be by doing the following few things:

Determine necessary financial tasks 

Get a firm grasp on your financial situation.

Start out by getting a credit report, statements from all credit cards, shop cards, bank accounts and “other” creditor organisations in your name and review them for accuracy.

Make sure that the accounts are indeed your financial responsibility. Also, determine a procedure to pay bills, make deposits and withdrawals, get cash, and pay taxes. Using automated bill pay with your bank is the easiest way to make sure your bills are paid on time.

This is probably a good time to make sure that you are doing all of your banking with the best bank for you. 

Review the convenience of the bank, as well as the fees and the benefits.

Locate important personal and financial documents 

You will need to locate important papers such as tax returns, wills, insurance policies, birth certificates, mortgage documents and Centrelink information.  You will need to make a new will as divorce impacts upon existing wills

You may also wish to update some of these documents based on your new situation … store up-to-date documents in a safe location that’s easily accessible.

Revisit each of your insurance plans, including health insurance, to make sure that you are appropriately covered in case of emergency.

Create a new spending plan and budget 

Changed circumstances call for a new budget.

Go through each of your expenses and decide how you can reduce each expense to reflect your new situation.

It’s important that you work hard to reduce your expenses to be equal to or less than your income. Any extra income you find can be used for savings.

Set new personal financial goals 

Most likely, your experience changed your financial priorities.

Decide what you would like to do with your money and put a plan in place to make your goals a reality. 

Make sure that your goals are realistic and flexible or frustration will keep you from achieving them.

Also, review your investment plans and types of accounts – any life change is a good time to make sure that you are on the right track.

Most importantly, enlist the help and support from your family, friends, and community and seek professional financial advice to ensure you have done everything you need to do to protect your financial future.