Going through a divorce brings many changes, especially when it comes to personal banking and finances. Frequently, splitting into two households means taking on more expenses with less income. As such, if you recently ended your marriage or you’re in the process of doing so, take the following steps to protect your financial future.

How to Maintain Financial Stability Post-Divorce

1. Create a Budget

Any time there’s a shift in your financial situation, it’s a good idea to create a new budget. To avoid overspending, you must know precisely how much money you have coming in and going out. Figure out the total amount of income you receive each month from work, alimony, and child support, and then determine what your living expenses are. This will allow you to see if there are any areas you need to cut back on.

2. Eliminate Joint Accounts

If you and your ex-spouse still have any joint personal banking or credit accounts, it’s time to close them. By having your name on the same account, you could be held responsible for new debts your ex incurs. Ask credit companies to suspend accounts that have remaining balances so no additional charges can be made.

3. Establish Your Own Credit

Many spouses rely on their partner’s credit score to obtain housing, take out a loan, or open a new credit card. If this was the case in your marriage, you’ll need to work on establishing credit in your own name to gain financial independence. Also, you’ll want to monitor your credit report closely for errors and have them fixed right away so they don’t bring down your score.

4. Build Up an Emergency Fund

When you’re married, you have a spouse to help out if unexpected costs arise. Without that extra support, it becomes more important than ever to have an emergency fund you can count on should you lose your job, acquire medical bills, or need unplanned home repairs. Begin building up your savings with each paycheck as much as possible to ensure your financial stability.

If you’re looking to make a fresh financial start post-divorce, visit The Missouri Bank in Wentzville, MO, to explore all your personal banking options. For more than 80 years, this institution has been a trusted resource for residents throughout Warren, St. Charles, and Gasconade counties. They offer a wide range of products and services to help keep your money secure and easily manageable. Call (636) 327-4900 to ask about setting up a new account, or check out their website for more information on their different personal banking solutions.