Thinking of a Divorce? Make Sure You Can Access Cash!

You can’t predict how your spouse will react when you announce that you want a divorce. If your spouse is in charge of your family’s finances or has access to joint accounts, you could find yourself suddenly cut off from your money! Do not put yourself in a position where you will need to rely on your spurned spouse for money or where your spouse could use the threat of turning off the money tap as a negotiation tactic.

Empower yourself by making sure you have access to money before your divorce that you can use to:

  • Move out if needed
  • Support yourself during the divorce
  • Hire a divorce attorney
  • Pay divorce-related court costs

How to Build Up Your Cash Reserves

The easiest way to build up your cash reserves is to open up a checking or savings account in your name and begin depositing as much of your income into it as you can before you file your divorce paperwork. Don’t forgo paying the important bills, like your mortgage or student loans. The last thing you want is to deal with collection agencies during your divorce!

Do not poach money out of shared bank accounts. You’ll eventually need to close these accounts and divide the funds according to your divorce settlement. If you empty the accounts before the divorce, your spouse may accuse you of trying to steal money. (Learn how to close down joint accounts during a divorce.)

Open Your Own Credit Card

Now is also a good time to apply for a credit card in your own name if you don’t already have one. You’ll want to close shared credit cards when you start the divorce proceedings, and you don’t want to find yourself without any financial cushion if you should face a sudden expense, like a car repair. Using credit cards in your own name is also a good way to begin building up your individual credit. is a great resource for comparing different credit card offers.

Borrow Money

Expenses can mount quickly during a divorce. Rather than put all these expenses on your credit card where you can face high interest rates, consider borrowing the money from a different source.

Many banks offer personal loans that don’t need to be earmarked for a specific expense. If you can, apply at your local credit union where interest rates will be lowest. You may also consider taking a loan from your 401(k).

Some employers allow their employees to take out a hardship loan of up to 50% of their 401(k) balance to be paid back over a period of time (usually five years). Interest rates on this type of loan will vary. As a last resort, you can take a withdrawal from your 401(k) plan or IRA. You do not have to pay back this withdrawal, but you will pay income tax on the amount you take out along with a 10% withdrawal penalty if you are younger than 59 and a half years of age.

A final option is to seek a loan from your parents, a sibling, or other family members if they are able. It may be difficult to ask for help, but that’s what family is for. Even if they can’t necessarily loan you money, perhaps your family can offer you a free roof over your head for a couple of months to help lower your expenses.

Be Ready

Building up some cash reserves gives you the freedom to pursue your divorce without facing crippling money worries. More freedom means you have the time, focus, and ability to seek a settlement that is more favorable to you. If you suspect that your spouse may be thinking of a divorce, you can follow these same tips so you aren’t blindsided.

One of the best ways to prepare for a divorce is to attend a local Second Saturday Divorce Workshop where you can hear from divorce experts and receive advice on your specific situation. Look for a divorce workshop in your area today. We also encourage you to read through our informative Divorce Article Archives for women.

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3 thoughts on “Thinking of a Divorce? Make Sure You Can Access Cash!”

  1. My soon to be ex-husband wanted a divorce because he found “someone else”. I filed for divorce before he did on the advice of an attorney, and I had to pay only a small portion of his normal retainer…However, my ex did not show up for work the day they wanted to serve him the div papers, so his boss called and warned him. While I was at doc appts, he went to the bank and canceled my debit cards and moved $ to new account. My attorney said to go take out the rest of the $ in he bank before he closed it, but I took only some of it because I knew he paid the mortgage and I did not want the check to bounce. Once it cleared the bank, the accounts closed and I have zero $. I wanted to get an ex parte because I have a son to drive around to appts and school and I can’t get money from him. He’s manipulating me and controlling me w the $. I had a little $ saved, but went through that quickly. I wish I wouldve taken all the $ per my attny but I’m too nice….wish I wouldve read this article first…things do happen very quickly so ladies, heed this advice. Now my attorney wants another $5k to finish my case and I have no idea what to do except take $ from IRA or credit cards. Oh, and I am a stay at home mom whose being told daily by ex to “get a job”

    1. Dont get a job till the decree is done. If u get a job sooner it will look like you need less alimony from him – just keep asking your lawyer for a payment plan and keep telling the judge you want full alimoney.

  2. Pingback: A Step-by-Step Guide to Preparing for Divorce - Second Saturday Divorce Workshops

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