Taking control of your finances before a divorce is essential. The earlier you start, the better. Here are 5 crucial steps to create stability and protect your financial well-being.
1. Create Some Financial Distance
Separate your finances. Establish some independence to prepare for possible changes ahead.
- Open a new bank account in your name only.
- Set up direct deposit for any income you receive, like your paycheck, into this account.
- Stop automatic payments for personal expenses tied to joint accounts.
- Consider opening a credit card in your name only if you don’t already have one. Having a card in your own name helps build individual credit and provides a backup option if joint accounts are frozen or funds become restricted.
Having a separate account and credit card gives you access to funds and establishes financial independence.
2. Secure Your Online Account Passwords
If you share accounts online, make sure they’re protected. Take steps to safeguard your privacy.
- Change passwords on all personal accounts, including bank, credit card, email, and social media.
- Enable two-factor authentication for an extra layer of security.
- Create unique passwords for each account and avoid reusing them.
Shared passwords can mean shared access. Changing them ensures your privacy and prevents unauthorized access to sensitive accounts.
3. Accumulate Cash and Understand Why
Having cash available is crucial. Unexpected expenses can arise, and access to funds can become limited during divorce proceedings.
- Aim to save at least three to six months’ worth of expenses if possible.
- This cash reserve can cover legal fees, housing costs, and emergencies.
- If you don’t have much cash saved, start small and build gradually.
This safety net can reduce stress, giving you a financial cushion as you transition to new financial arrangements.
4. Check and Lock Your Credit – Here’s Why
Protecting your credit is a critical move. Divorce can sometimes lead to unauthorized spending or unexpected credit activity.
- Get a copy of your credit report from sites like AnnualCreditReport.com to review for accuracy.
- Freeze your credit with major bureaus (Experian, Equifax, TransUnion) to prevent new accounts from being opened in your name without your consent.
A credit freeze is free and doesn’t affect your score. It’s a simple but effective way to secure your financial future.
5. Set Up Mail Forwarding or USPS Scanning
Redirecting your mail is important. Sensitive documents and bills might still be arriving at a shared address, so make sure you control your incoming mail.
- Set up a forwarding address with USPS to ensure all important mail goes directly to you.
- Alternatively, sign up for USPS Informed Delivery. This service emails you scans all of your incoming mail so you know what’s coming each day.
Controlling your mail helps you stay on top of bills, bank statements, and other important documents that could get lost or delayed.
Take Action: Don’t Let Separation Put You at Risk
Starting your divorce with these steps provides peace of mind. Taking action now means you’ll have more control and clarity as you move forward.
At Orlando Divorce Planning, we can help you understand your financial options and work with your legal team to ensure your assets and rights are protected throughout this process.
Contact Orlando Divorce Planning now to schedule your consultation and take control of your financial future.
