California residents can expect major lifestyle changes following a divorce, especially if they have children. When someone gets a divorce, they no longer can depend on two incomes, and they also have to deal with separating finances from their spouse. While spousal and child support can help someone’s financial situation, it is also a good idea for people to engage in proactive planning for their future.
One of the first things people should do when they get a divorce is to separate their finances from their ex and begin to build a solid credit rating. Many married couples share bank accounts and credit cards, and these accounts need to be closed or separated after a couple splits up. To help reduce confusion, it may be a good idea for individuals to close accounts instead of separating them, but this is not always easy with credit cards. However, if someone has their spouse as an authorized user on their credit card and they are not both account holders, it is fairly simple to remove someone’s access to an account.
Individuals should also create a financial plan following a divorce. These plans can help people understand what long-term expenses they face related to caring for their children, such as medical and dental care and college funds, and start putting aside money accordingly. This can help ensure that individuals are ready for these events instead of being surprised and without funds to deal with them.
An attorney may also be helpful to someone going through a divorce. Different states have different laws regarding asset division, child support and alimony, and an attorney could help someone navigate these rules and achieve an equitable outcome.
Source: Huffington Post, “Divorce Finance: How To Get Your Finances In Order Post-Split“, Jeff Landers, May 18, 2013