I’ve been told divorce can be ugly, emotionally draining, and a financial nightmare. Over the years, I’ve helped women from all walks of life, and many of them had been going through a divorce or had been divorced for years. One thing I learned is that all of them suffered financially. I learned a lot from them, and I was grateful they shared their experiences with me. I’m writing this blog to let you know that you will be okay if you are going through a divorce, are newly divorced, or are thinking of getting divorced. Right now, it doesn’t seem like it, but you will be fine! I learned from my clients that they all struggled financially when they left their spouses. Many of them suffered for years because they didn’t have good credit, a bank account in their name, savings, a job, and no idea how to get their financial life together. Is this you? If so, keep reading and apply what you learn.
If you are facing your marriage being dissolved, make sure you do the following things:
- Get or maintain your credit score of 650 plus – When your credit score is 650 or higher, this prevents having to put money to pay a security deposit. It also eliminates having to get a co-signer.
- Have your own checking and savings accounts.
- Redo or get a Will. Life will happen to everyone, so you need to protect your assets and ensure your children are cared for.
- Get life insurance outside your job. If you have life insurance, then change your beneficiary. People forget to remove their spouse, die, and the spouse gets all the money.
- Update your resume – if you need to get a new job or find another way to make more money, be prepared to take the following steps.
The following steps you need to take will help you figure out what you need to do and fix. If you have a business, READ, and make sure you protect your assets and everything you worked for.
1. Understand the Difference Between Separate Property and Community Property
First, you should know that you may not need to take many additional steps to protect your business assets in a divorce if those business assets are likely to be classified as separate property. Texas is a community property state, which means that only community property will be divided (and separate property will not be divided). What is the difference between the two? According to the Texas Family Code, community property “consists of the property, other than separate property, acquired by either spouse during the marriage.” Separate property, on the other hand, includes the following:
- Property owned by either spouse prior to the marriage
- Property acquired by either spouse during the marriage as a gift or through an inheritance
- Personal injury recovery from a lawsuit acquired by either spouse during the marriage.
In other words, if you acquired your business assets prior to the marriage, or if you inherited the business during the marriage, as long as the property has not become commingled, you may not need to take additional steps to protect those assets since they will not be subject to division in a divorce. Additionally, because assets are inside a business, the assets will most likely not be divisible by a court, but the interest in the business can be valued and divided.
To learn more about this statement, go here.
2. Talk to an Attorney
I noticed with my clients that they didn’t consult an attorney. They tried to do everything on their own. Most of them walked away with nothing, and their husbands were left financially sound. I know paying a lawyer is costly. The median cost for a divorce attorney is $7500. Now, if you try to do this yourself, it will cost about $300, but I witnessed women losing much more because they didn’t fight for what’s rightfully theirs.
I have a solution to fixing your attorney-cost issue. LegalShield is a wonderful company that can help with situations like these. I personally have been a customer for about seven years. They can help with the following legal areas:
- Review legal documents and contracts
- Advice and consultation
- Can create legal documents and make calls on your behalf
- Have access to an attorney to represent you when you go to court
- Create a Will, Power of attorney, and other documents you need for your estate
They help with much more! The monthly membership is $29.99 a month. Click here to learn more about them.
Check/Monitor your credit report
In the world we live in today, your credit is so important. If you’re going to buy a car, rent an apartment/house, get a cellphone, or even get your electricity turned on, this three-digit score will determine if you pay more upfront or over the years. Hopefully, you have a healthy credit score, and you’re paying your bills on time. I’m married, and the only debt I have with my husband is our home. You must understand that you are two separate people, and you should keep your credit score healthy. Deciding to leave your spouse because you want to or not, take care of your financial life and make sure you maintain it. If you don’t have liquid money, sometimes credit will show lenders they can trust you with their money if you need it.
I suggest getting this app to monitor your credit report:
1. Apple
2. Android
If you need help with building your credit score and keeping it healthy, check out my blog about credit.
Be aware, be informed!