It’s a sad, unfortunate part of life, but sometimes couples decide to go their separate ways. Without proper planning, divorces and separations can also have a negative impact on a family’s finances. There are some steps that “recently single” adults can undertake to minimize potential problems. Separations can have challenging emotional and practical challenges, but money doesn’t need to be one of them. With help from the Team Move OVM Financial blog, here are some suggestions that can make this part of life a little more manageable.
1.Pay the bills on time — late payments create a negative status for both parties.
2.Close joint accounts to future transactions — This minimizes the intentional or accidental situation where one party runs up a credit card debt that the other may be financially responsible for.
3.Open new cards individually — Cards can have a positive impact on credit scores, in addition to having value in case of emergencies.
4.Keep an eye on your credit often — Particularly if you’ll need to purchase a big ticket item, it’s always wise to have an idea of your financial standing, and to react quickly if problems arise.
5.Refinance quickly — If it is necessary to refinance in order to remove a party from the title, or sell the home to divide equity or pay off debt, do so as soon as possible, The longer you delay this necessity, the greater likelihood for problems to arise.
Here’s one, final important note. To the best of your ability, try not to make your former partner the enemy, or to attempt some type of revenge. Inevitably, any attempt to cause problems for the other party creates a negative impact for both, and often leads to financial damages that can take years or decades to overcome.
The blog has several more tips on how to structure your finances in the aftermath of a divorce or permanent separation. If you have questions about qualifying for mortgages after a legal separation, Sanford’s Team Move mortgage experts are happy to help. Please call 919-777-0114 to schedule an appointment.