Significance

• The process of divorce deals with separating and dividing every aspect of your life. Therefore, be prepared to disclose every aspect of your joint and personal financial portfolios, as the court will divide your financial assets in the manner in which it sees fit. Honesty is key here, because you would land yourself in legal hot water if you try to avoid disclosing the full realm of your financial profile to ensure your ex can't get her hands on it.
  
  

Effects

• A divorce can impact all aspects of your finances. In addition to the division of joint banking accounts, the split also has an effect on your investments, particularly in deciding if you both will keep them or split them. Divorce can also affect your credit, particularly if you both had joint credit accounts and one or the other of you has used those accounts to point of unmanageable debt. Even after the divorce, you are both still on the line for your joint debts, and creditors can come after one or both of you after the split.
  
  

Misconceptions

• Many people make the mistake of thinking that a divorce frees them from financial obligations they had as a couple. Moreover, they may do nothing at all when it comes to many important financial matters, such as adjusting life insurance policies, changing wills and amending other accounts to reflect the split. It is important to overcome these misconceptions so that you are financially protected during -- and after -- the divorce process.
  
  

Considerations

• Pull your credit rating after the divorce to assess where you stand financially. Be sure to let the credit bureaus know of your new marital status so your ex cannot make any changes to your credit. Change all important documents, including your life insurance beneficiary information and the person in charge of executing your estate should something happen to you. Also, make sure to budget properly to account for living on your own, as this can be an adjustment for newly single people.