Whether it is a breakup from a long relationship, marriage, or even friendship, separation can put a lot of stress on your financial life, especially if it was shared with the other person. A sense of “what now?” might take over regarding regaining control of your financial life and giving it some stability. While this may sound intimidating, it’s possible to give yourself the new start you need. You can use the following tips to reorganize your finances after any separation.
Know what you still have
The first step is to know what you still have or what is still legally yours after a separation from a marriage or a business partnership. You need a clear understanding of your financial rights, and you can always speak to a legal expert to assist you. Knowing what you still have will help you plan your financial life and move forward. Also, work out your current net worth by listing all your assets and debts (including joint debts) in your name.
Give yourself time to plan
The last thing you want to do is jump into hasty decisions with your money immediately after a separation, especially when your emotions are still hot and fragile. You may end up making decisions that would further hurt your finances. So, give yourself enough time to plan and make the right decisions.
Speaking of giving yourself time, if your separation is a result of losing a loved one, you can try using sentimental pieces like cremation bracelets to honor their memory while you move on.
Close all joint accounts
It is important to close all joint accounts you had with your ex-partner while you still contemplate your next best financial move. If your late spouse had any debts, that burden might fall on you unless a legal agreement in place states differently. Closing all joint accounts will also ensure that your ex-business partner does not leave you with any form of financial liability. You should also set up new bank accounts that only you can access and ensure that your payments go only into those accounts.
Create a budget
Making a change from a dual-income source to a single one will require a lot of adjustments, and it all starts with creating a new budget. Take stock of how much income you make and your monthly expenses, and let that guide you in making the necessary changes to your spending habits. Also, don’t forget to add in all your outstanding debts, payments, and other forms of financial commitments. If this process feels too overwhelming for you, don’t hesitate to speak with a financial expert.
Aim at future stability
Finally, set yourself up for a more stable financial future by investing your money, saving, paying off your debts, and creating extra income streams. Investing will help provide some financial security in the future. Saving, creating new income streams, and settling debts will help make your present financial situation less stressful.