Once a divorce is finalized, many ex-spouses experience a wave of difficult emotions. The reality that a marriage is over can set in quickly and it can be understandably overwhelming. People have to adjust to different schedules, a new home and a new lifestyle. Sometimes this can feel liberating, but other times it can be very frightening.
No matter how a person feels after a divorce, it can be crucial to take some time to think about the financial implications of the split and determine what lies ahead. Focusing on real numbers and planning for the future can be a welcome change for those who are struggling to cope with less concrete aspects of a divorce. Being proactive in tackling financial issues can also give people a sense of control and empowerment.
There are three areas of post-divorce finances that people across Anoka may want to think about: the past, the present and the future.
- The past: Before the divorce, it is likely that spouses named each other as emergency contacts or beneficiaries in life insurance policies and retirement accounts. Going back to these documents and updating them to reflect the change in marital status can be very important.
- The present: Money can be very tight immediately following a divorce, which is why it can be the best time to reassess budgets, start to rebuild or build credit and take control over investment accounts. Many spouses may not be used to paying bills, using credit cards and keeping up with investments. However, these are some of the best ways for people to start to establish themselves as individuals.
- The future: People who are divorced will likely want to adjust or draw up documents that make plans for the future. This can include wills, advance health care directives, powers of attorney and trusts.
Identifying and tackling financial issues that can come up after a divorce can be very difficult to do alone. However, it can save people a lot of anxiety and financial penalties down the line. For help in these areas, people may want to consult an attorney of financial planner who is familiar with the challenges of post-divorce finances.
Source: Daily Finance, “5 Tasks to Help You Start to Rebound Financially Post-Divorce,” Hank Coleman, April 29, 2014