Money Rehab with Nicole Lapin - Your Ticket To Post-Break-Up Financial Boot Camp

Episode Date: August 3, 2023

If you're newly divorced or out of a relationship, you're probably adjusting to your new life as a single person; of course, there's a lot to that, but one of the most important elements is getting to know and love your new financial life. Nicole gives five steps you should take to start this new chapter right. Want to start investing, but don't know where to begin? Go to moneyassistant.com and meet Magnifi, your AI money assistant, designed to help you make a plan for your financial goals. Want one-on-one money coaching from Nicole? Book a meeting with her here: intro.co/moneynewsnetwork 

Money rehabbers, you get it. When you're trying to have it all, you end up doing a lot of juggling. You have to balance your work, your friends, and everything in between. So when it comes to your finances, the last thing you need is more juggling. That's where Bank of America steps in. With Bank of America, you can manage your banking, borrowing, and even investing all in one place. Their digital tools bring everything together under one roof, giving you a clear view of your finances whenever you need it. Plus, with Bank of America's wealth of expert guidance available at any time, you can feel confident that your

money is working as hard as you do. So why overcomplicate your money? Keep it simple with Bank of America, your one-stop shop for everything you need today and the goals you're working toward tomorrow. To get started, visit bofa.com slash newprosmedia. That's b-o-f-a dot com slash n-e-w pros p-r-o-s media. bfa.com slash newprosmedia. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. So I'm not sure if you know, but I went through a serious breakup last year. If you are going through the end of an engagement, the end of a marriage, or a long-term separation, I wanted to give a quick boot camp on getting your financial booty back in shape. I'm sure you're getting used to new life as a single person, and there's a lot to that, but one of the most important

elements is getting to know and love your new financial life. So here are five steps you should take to start this chapter off right. Step one, close it up. Closing any joint credit cards or getting your name off joint bank accounts is your first order of business. You don't want to pay for half of whatever your ex is doing to tackle the impossible task of getting over you, right? But seriously, you're done splitting the bill. So if your work direct deposit goes into a joint checking account or there are any other direct deposits, change that ASAP. Step two, show your budget some love. Sit down and have a face-to-face talk with your budget and remove all signs of your ex. How is everything going to be different now that you're the only one who's bringing in income, but also you're the only one you're going to have to pay

expenses for? Maybe you've been paying for two Netflix users or have a bigger account than you need or have a package that you are never going to watch. You can digitally downsize as well and also change that password. Bye. Step three, do an ex-cleanse. It's a cathartic experience to get rid of the stuff that you shared or purchased together. And it's even more cathartic if you can make a little extra cash by doing it. That extra furniture, the king-size bed that your ex insisted on, let's say, or the Peloton they use like as a coat rack, get it out of there. Nobody wants to live in a haunted house or apartment, so get rid of all those ghosts. Depending on the brand or the quality or the condition of the stuff, post it online on auction sites or on Facebook Marketplace

or Craigslist. If you do that, though, try to hold off until the first or the 15th of every month. Those are the dates when people are moving into new places, and so they are scouring the site for stuff like that more often. Step four, make sure they're gone for good. I know it's tough, but it makes for a fresh start. Triple check that your ex's name is off everything and that your address and appropriate designee or beneficiaries are updated. Here's a quick checklist. First, bank and investment accounts. Second, driver's license title registration and insurance. Third, employer's records or professional licenses. Fourth, title to a property or utility bills. Fifth, insurance beneficiary information, life, health, homeowners,

disability insurance. Sixth, IRA and retirement accounts. Seventh, medical directive will and living will. Step five, do damage control. Take control of the aftermath by taming your credit score. When's the last time you checked your credit score? You do need to do it every year and maybe more often while you're in the weeds separating assets. If your name wasn't on the accounts, you weren't accruing any credit during the time you were in that relationship, so you have to build it back up. If everything was under your ex's name and your ex didn't pay the bills, then you have to fix your credit score. The easiest thing to do is to make sure all of your bills are paid

on time. I know that might sound patronizing, but seriously, just check everything is on direct deposit and don't close any credit cards. Keep one recurring bill on each card at least so that you're only at about 10% of the max and then set it on auto pay so that you're paying on time every single month without having to think twice about it. This will show creditors that you're consistent, you're not maxing it out, so you're keeping your utilization score in check, and your credit score will start ramping up. And also, don't forget, baby, this too shall pass. For today's tip, you can take straight to the bank. If you're doing steps one through five, keep meticulous records. Bethany Frankel, reality TV personality, entrepreneur,

overall boss bitch, went through a divorce that took a literal decade. And she said her saving grace was having her gigantic binder with documents on everything. So keep records of all of these money moves. Plus make copies of your divorce decree if you have one. Create a system of tracking child support payments or alimony payments if you're getting those or paying them. Hopefully you won't need to refer to any of this paperwork very much, but if you do, it likely won't be on a particularly enjoyable occasion. So make it easier on yourself and keep them safe and accessible. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially

have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.