Finances after the Break-Up

4. Save something every month.
Co-author of "On My Own Two Feet: A Modern Girl’s Guide to Personal Finance," Manisha Thakor says anyone going through a divorce should remember that good personal finance does not have to be difficult. “When you boil it all down, every single piece of personal finance advice falls into one of three buckets (1) save, (2) invest, (3) protect.” Try not to become overwhelmed. Remember to keep putting something into savings each month, try and invest 15 percent of your income in simple, stable funds and protect yourself with adequate insurance.

5. Close all joint accounts.
You should also protect yourself by closing any joint accounts and selling or refinancing any secured assets with liens against them held by you and your ex-spouse. “For example, if an ex is awarded the car and doesn't make payments on time, that will hurt you. Even though the judge said you're not responsible, the creditors still have the right to report you as being late,” says Mortgage Planner Jay Dacey.  
 
6. Educate yourself about money.
Remember that managing your finances is an ongoing process. Another useful tip from Barbara Shapiro is to “empower yourself by reading, taking classes and talking to your financial advisor, especially if you weren’t the one managing your finances before the divorce.” Craig Hyldahl agrees that there must be “ongoing monitoring and constant contact between clients and financial advisors.” By keeping track of how your expenses, income and investments grow or change over time, you’ll be in a better position to make financial decisions.

 And finally, it’s important to remember you’re not alone. “While it's natural to fear whether you'll be able to take care of yourself financially speaking, don't for a minute think you are alone in that concern,” writes Manisha Thakor. “A whopping 70 percent of Americans live paycheck-to-paycheck and that cuts across income spectrums.” As you begin your new life, stay informed, positive and proactive when it comes to your finances and your situation will most likely continue to improve.

FOR MORE INFORMATION
For a free financial workbook for divorced individuals, send an e-mail to Jay@JayDacey.com with the subject line: workbook.
Learn more about Manisha Thakor at www.OnMyOwnTwoFeet.com.
Learn more about HMS Financial and Barbara Shapiro at http://www.bshapiro-cdfa.com/about.htm.
To contact Craig Hyldahl or learn more about AXA Advisors, visit www.axaonline.com.