What are your financial Steps to Take If You're Getting Divorced

If you're facing the emotional turmoil of an upcoming divorce, part of your worry is revolving around your personal finances. Divorce will affect your personal finances badly but, hopefully only in the short term. There are financial steps you should take during your divorce to shield yourself as much as possible.

1. Separate Your Credit Card Debts
Any debt (no matter in whose name) is open to a fifty-fifty split until the divorce is signed.

2. Remove Your Name from Your Spouse' Cards
Before you destroy any credit cards your spouse may have given you, call the creditor and remove yourself from the account. If you don't, the bank will continue to report the debt on your credit report, even if you are only a co-signee. This will increase your debt-to-income ratio by unfairly penalizing you for the debt of your spouse. Your credit score plummets if your spouse is late on their credit card payments.
3. Close Joint Bank Accounts
Separate your bank accounts while the divorce process is going on. If you still live in the same home, keep a bank account open for household expenses only and establish auto debits with payees, to prevent your spouse from withdrawing funds for his or her own ends.

 4. Decide if you want to sell the matrimonial house or buy the other spouse out.
Get a certified appraiser, and not a real estate agent to give you a letter of opinion, of what your house is worth. Pay the cost of the appraisal and get 2 or more reports (one from each party) to get an honest appraised value of your house.

5. Plan for the Future
You are about to become a one-income household. This may increase or reduce your lifestyle. To deal with the upcoming change to your personal finances, make plans for lowering your car payment, mortgage and any other large fixed payments and discover new ways to maximize your money.

Become an informed client.

For all your mortgage needs call: Eduarda (Eddie) Pita - 416-920-9931

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