Important Financial Advice When Starting a Divorce

Divorce can wreak havoc on your finances if you’re not careful. The good news is there are steps you can take to plan out your financial future and mitigate some of the potential effects divorce can have on your overall financial outlook.

Here are some tips to keep in mind to help you protect your financial status during your divorce.

• Only listen to professionals: You’ll find that people will have a whole lot of unsolicited advice about all aspects of your divorce. No doubt they mean well, but when it comes to your finances, you should only trust in people who are actually professionally qualified to make these recommendations.
• Close joint accounts: As soon as possible, close any joint credit and bank accounts you have. You’ll want to avoid your spouse racking up debt on your credit cards that you could be partially liable for, and having your own separate banking account will help you keep better track of your own personal finances.
• Budget carefully: Keep careful track of all of your income and expenses and form a detailed budget that you can then follow. This will help you make sure you adjust to your new financial status and avoid overspending.
• Start establishing your own credit: After closing joint credit accounts held with your spouse, you should open your own credit cards and begin establishing your own individual credit. Your credit score will take a hit by closing accounts and losing credit history, and this will help you to start building it back up.
• Pay attention to savings: It might seem impossible to start saving money when you’ve just lost a significant portion of your income, but even a small amount is better than nothing at all. Put a little bit of money away into a savings account and/or retirement accounts each month to establish financial security.

For more information about steps you can take to get a hold of your finances during a divorce, contact an experienced Long Island lawyer at Bryan L. Salamone & Associates.