How to Prosper During Your Divorce

When going through a divorce it's imperative for you to address your finances. It's difficult to be practical when your hearts breaking or your feeling guilty. It's a very emotional time for both parties. Try not to let your emotions override your good judgment when it comes to your finances. You will regret it and may be left penniless. First, its very important to get a financial snapshot of where you stand.

So, gather up all the information you need such as mortgage balances, credit card balances, insurance, phone bills, etc. Find out how much your home is worth and what your assets are. Then, you will have to figure out what your outstanding debts are. Your tax accountant or any wise friend in the financial field can help you if your having difficulty with this. As soon as possible, protect yourself. Set up your own checking account..in your name only. Get a credit card with your name on it for emergency purposes.

Get your name off your ex's debt or you could get stuck with it. Many people going through a divorce will let credit issues slip and it causes serious problems later. If your credit gets damaged it will be very hard for you to rebuild your life. It would be helpful to contact the 3 major credit reporting agencies like Equifax and get a copy of your credit report. Every year your entitled to a free copy so go ask for it.

This way you can work on resolving any issues that may come up. Some people have complex financial issues. If you fall into that category, then its important to contact a knowledgable finance person (like a CPA). Many professionals offer a free consultation so take advantage of that and take notes. Shop around.

Just do not use anyone that your ex knows or you may get biased advice. One of the trickiest financial issues is your residence. Who stays in the house? Are there children and how old are they? Is it too expensive to keep the house? What are the alternatives? Only you can answer these questions. Try to be practical. If you have tons of debt and very little equity in the house then the house may have to be sold.

Money issues can ignite intense emotions and a large percentage of divorces due because of money so be aware. Negotiating will be tough but remain as calm as possible. Do not give in to intimidation and manipulation. Know what you are entitled to and play fair.

Source by Zoe Zazlove

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