Since the new year and month of January often mark a spike in divorce rates, it is important to remain cognizant of financial strategies to consider after a divorce has proceeded. Following these tips will help to create peace of mind after the stresses of a divorce.
Cancel Joint Bank Accounts
After a divorce, it is important to fully separate joint checking accounts as well as shared credit cards. Experts suggest requesting an account suspension if a credit card balance cannot be paid off. It is important to replace these accounts with new ones. Especially considering the financial strain of a divorce, it can be wise to responsibly use a credit card of bridge loan to help with expenses in the short term. It can help to make a list of shared accounts while married and replace this with individual accounts.
Create an Emergency Reserve
After getting back on your feet, it is useful to create an emergency reserve with six months of living expenses. Having a safety net while single can be important in order to protect against future financial hardship.
Monitor Credit Score
After a divorce, it is important to check your credit score to help notice and dispute any discrepancies that could hurt your score. A low credit score makes it difficult to secure a loan with a low-interest rate, and can make it difficult to get a job or rent an apartment or condo.
After a divorce, your personal finance goals may shift. Especially if a partner was responsible for investments prior to the divorce, it is important to consider ways in which you can reallocate investments to suit your own risk tolerance and financial goals.
Many legal and relationship experts note that this may occur since many couples view January as the time to embark on New Year’s resolutions and new beginnings. The holiday season also may cause a delay in divorces, since many parents want to maintain a sense of harmony for children during the holiday season in November and December.
A divorce is clearly an important financial milestone. If you are considering filing for divorce, it is important to find a reputable divorce attorney who can work with you. Here are some considerations:
Selecting the right lawyer to represent you during this trying time is crucial. It is so important that you choose someone who understands what you are going through and who has the patience to guide you step by step through the process. When making your selection, look for someone who meets these basic criteria and is:
- is accessible 24/7;
- shows compassion;
- is experienced in both negotiation and litigation; and
- offers a valuable initial consultation.
Above all, look for someone who will put your interests first!
Remember, although you want someone who is a skilled litigator in case the need for litigation arises, it is best to avoid an attorney who seems to favor litigation when negotiation or mediation would be in your best interests.
Once you have selected an attorney, it is time to take the next step and schedule your initial consultation.
In order to get the most out of your consultation, you should come prepared, not only with answers to the attorney’s questions, but also with questions of your own—questions that likely have been on your mind since you first started to contemplate the possibility of divorce.
Divorce is stressful, but the experienced and compassionate Bergen County divorce attorneys at Aretsky Law Group, P.C., are dedicated to guiding you through the difficult process with as little anxiety as possible. We will be with you every step of the way to ensure that your rights are protected and your needs met.