Personal Finance

Spring cleaning your finances in divorce

Chanel Fortier
Chanel Fortier

Spring is a time of new beginnings, a season of hope and where things seem bright and possible. Spring is an ideal time for cleansing and an opportunity to rebuild.

There are times when it takes us a little bit longer to realize there are brighter days ahead. Rebuilding your life after a loss or major change, such as divorce, can feel intimidating or overwhelming at first. But it also provides you with the space to build something greater.

Going through the divorce process is a time when emotions are running at an all-time high. Take a moment to stop and smell the roses. Once you are in a place where you feel you are better equipped to handle the logistics during the divorce, there are some things you need to take into consideration:

1. As you spring clean, get organized and make sure you know where you stand financially.

2 Once a divorce process has started, many spouses start thinking about protecting and preserving what they feel is their “own.” A mistake many people make is failing to identify hidden assets. As you work your way through the financial clutter during the divorce, make sure to check for hidden assets:

▪ Checking Account Statements

▪  Savings Accounts

▪ Brokerage Statements

▪ Expense Accounts

▪ Children’s Accounts

▪ Tax returns

3. Plan a budget according to your post-divorce income and lifestyle.

4. Clear out the cobwebs. Don’t ignore the relationship between emotional clutter and physical clutter in your home.

5. Check your credit score. During your marriage, you may not have been paying close attention to your individual credit score. Obtain a copy of your credit report so you can correct any errors it contains. Good credit will be an important part of your financial well-being.

6. Spring is a good time to learn something new. Take some time to educate yourself on finances and financial planning.

Spring is a perfect time to start anew and start with a clean slate. Take an inventory of your life and take some time to get on track and discover what you want your future to look like. It’s time to get organized, gather data, and plan for this transition in your life.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment Advice offered through Personal Financial Group, a Registered Investment Advisor. Personal Financial Group, Paramount Private Wealth and LPL Financial are separate entities.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no assurance that the techniques and strategies discussed are suitable for all individuals or will yield positive outcomes.