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Getting Your Finances in Order After Divorce

Posted on in Divorce

DuPage County divorce attorney, divorce process, divorced spouses, divorce decree, divorce and financesWhen spouses end their marriage through divorce, their lives are often thrown into upheaval. As they work to find new living arrangements, divide marital property, determine whether child support or spousal support will be necessary, and allocate parental responsibility and parenting time, they often struggle to get their finances in order during this chaotic time.

If you are in the midst of the divorce process, you should take steps to get a clear and complete picture of your financial situation, which will ensure that you are able to avoid difficulties as you work to move on to the next phase of your life. Consider the following tips to help prepare for financial success after divorce.

Be Ready for Big Changes

According to the law, divorced spouses should be able to maintain a similar standard of living to what they enjoyed while they were married. However, this is often not possible, since each spouse will only be earning a single income. Parents may need to move to a more affordable home, which means that children may be required to change schools. Hence, the family will need to get used to new schedules and routines.

As you adjust to all of these changes, this is a good time to take stock of your spending and try to cut back on expenses. Saving money by eating out less or making fewer purchases can be difficult, but it will establish a more secure financial foundation for this new phase in your life and ensure that you will be able to provide for your family in the years to come.

Resolve Legal and Financial Issues

After a divorce has been finalized, it is important to understand the steps which must be taken to meet the requirements specified in the divorce decree. Ex-spouses should also be sure they have finished separating their finances from each other. Consider the following actions to help resolve any outstanding issues:

  • Update health insurance plans to remove an ex-spouse from coverage or enroll in a new plan if you are losing coverage;
  • Close joint bank accounts and credit cards and update the address and contact information on any accounts which remain open;
  • Update beneficiary information on life insurance policies and retirement plans;
  • Update wills and other estate planning documents;
  • Make changes to income tax withholding;
  • Make required changes to mortgages or other loans;
  • Transfer the titles of co-owned vehicles; and
  • Distribute funds from retirement or investment accounts.

By taking steps to meet these legal and financial requirements, you will be able to avoid any legal disputes that could arise in the future, and you will have a more firm financial footing upon which to begin your post-divorce life.

Contact a Wheaton Divorce Lawyer

If you need help determining how to resolve outstanding legal issues in your divorce, the skilled attorneys of Anderson & Associates, P.C. can help you understand your rights and responsibilities and advocate for your interests throughout the divorce process. Contact a DuPage County divorce attorney at 630-653-9400 to schedule a free consultation.

Sources:

http://www.divorcemag.com/blog/money-financial-financial-impact-of-divorce

http://www.divorcemag.com/articles/understanding-the-financial-impact-of-divorce

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