Steps Needed for Financial Success After Divorce

 Posted on June 19, 2018 in Divorce and Finances

Much of your work during your divorce will go towards ensuring that you are financially viable afterward. Through the division of property, you will lose assets that you may have been counting on for both your short-term stability and long-term investing. Holding onto key assets and establishing fair support payments is vital in reworking your financial plan. However, your divorce agreement is a starting point and not the end goal. You must follow through with wise decisions so as not to squander your hard work during the divorce.

Immediate Actions

When your divorce becomes officials, there are several changes you must make to acknowledge that you are no longer married:

1. Canceling Joint Credit Cards: You do not want your credit rating to be tied to the financial decisions that your former spouse makes moving forward. If you had shaky credit with your spouse, establishing your own line of credit will help you improve your record.
2. Changing Your Beneficiaries: There could be confusion about who would inherit your assets upon your death if you do not update your estate planning forms. Your former spouse will no longer be your primary beneficiary, but you may need to leave him or her some money if he or she is relying on your for support payments.
3. Updating Your Health Insurance: You can drop your former spouse from your health insurance plan, though you may need to keep it as a family plan if you have children. If you are the spouse being dropped, you must figure out your insurance source moving forward.

Long-Term Planning

You want to thrive, not just survive, after your divorce. Some divorcees are fortunate to already have a good career and diverse investments. Others will need to create a new plan for long-term financial growth:

1. Budgeting: Calculate your income and necessary expenses and figure out how much money you will be able to put aside towards savings.
2. Investing: Consult with a financial advisor to learn how you can build up your savings and retirement accounts while also earning interest on that money.
3. Career Advancement: Identify the ideal job or career for earning your desired income and figure out what steps you must take to get there, including continuing education.

You may find it necessary to make short-term investments and sacrifices in order to create long-term gains. However, you should be careful with how you spend your assets because there is some risk involved.

Financial Plan

You should have an idea of your financial goals before you start your divorce negotiations. A Kane County divorce attorney at Goostree Law Group can lay out how your divorce agreement can set you on course to reach that goal. To schedule a free consultation, call 630-584-4800.

Source:

https://www.forbes.com/sites/jefflanders/2018/02/12/a-checklist-to-help-you-manage-post-divorce-finances/#71d557a06bb3