Managing money through divorce

Managing money through divorce

RICHMOND, Va. (WWBT) - It’s not a fun topic - but it’s a necessary one these days. Divorce not only takes an emotional toll on people, but it’s also financially traumatic.

Think about this - if you are going from a two-income family to a single income, or you stayed at home with the kids, your life is going to change drastically with a divorce.

It’s really important to separate everything that as been joint. Communicate with each other. Both of you have rights to joint accounts, but you need to untangle them.

Cherry Dale with the Virginia Credit Union says navigating your money in a time of divorce isn’t easy. Be proactive about separating accounts-- and monitor your credit. “You have a joint credit card with your spouse and you’re assuming they’re paying it. They might not be paying it and it’s really going to impact you,” said Dale.

Establish your own credit. If you do get a card for the first time, it takes 6 months to get your first score accessing credit.

Figure out if you can afford to keep a house or do you need to walk away from that expense.

Look over your 401-K accounts, life insurance, will, and living will - make sure you change your beneficiaries.

Organization is key at this time. Keep track of all payments to a spouse or toward any other legal arrangements.

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