Preparing for divorce
Going through divorce can be overwhelming and may change many aspects of life, especially finances.
The divorce process rarely follows a straight line, but these steps may help:
Step 1: Get organized and gather key financial documents
To prepare for the legal process, it’s important to gather your own copies of current and past financial statements to gain a full understanding of all the accounts you and your partner hold together, as well as individual accounts.
Some common documents may be related to your:
- Assets: checking, savings, investment accounts
- Property: home, land, vehicles
- Debts: credit cards, lines of credit, mortgages
- Household expenses: phone, Internet, insurance
- Retirement accounts: IRAs, 401k plans, pensions
Step 2: Understand what you own and what you owe
Once you’ve gathered your key documents, determine what is owned, owed, and where changes may be necessary. Here are a few things to consider:
- Determine whether you will retain or close joint or individual accounts.
- Identify where name or address changes may be needed.
- Determine if you need to establish any new individual accounts. Note that some accounts may require re-qualification.
- Review beneficiaries on all accounts for updates that may be needed.
- Consider changing and securing your passwords and PINs on your individual accounts and cards.
Step 3: Know what bills are due and protect your credit
If you and your spouse share credit accounts, you may also share that debt — no matter who does the buying.
Remember that on-time bill payments make up 35% of your credit score.1 To protect your credit history, if possible, determine who will pay what and closely monitor that progress. Set up account alerts2 to ensure no payments are missed.
It’s also wise to regularly monitor your credit report so you can spot any remaining accounts in your name, as you could be legally responsible for those debts as well.
Credit Close-Up® offers eligible Wells Fargo Online® customers complimentary access to their FICO® Score and credit monitoring alerts as well as personalized tips and insights.
Step 4: Create your go-forward budget
Since your income and expenses will likely change once your divorce is finalized, creating a new budget can help you feel more prepared.
Review current household expenses and identify items that could change such as childcare or insurance premiums that may increase post-divorce and ways to adjust.
If you need more help, our Budget Watch tool helps make it easier to set goals and notifies you when you’re nearing your spending limit.
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Once you’re financially prepared for divorce, take further steps to protect your finances. Up next:
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Explore tips to help access funds when you need them the most.
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