Going through a divorce can be a financial burden on both parties. Not only does it cost money to split the household and divide assets, but there are a lot of adjustments that need to be made when it comes to financial management.
Post-divorce often means that you are now running a household with a single income. At the same time, additional financial burdens can be placed on your budget if child support and alimony need to be paid each month.
No matter your age at the time of divorce, there are a few steps that you can take to manage your finances during this transition in life. Here are a few tips from the experts:
Set a Budget: Your income and expenses will change during this time. Set up a budget and keep track of it each month. It might take a few months for the dust to settle so you can determine your actual expenses. But tracking these numbers is essential so you can avoid overspending.
Get Health Insurance: Divorce might result in a loss of health insurance if you were previously on your spouse’s insurance plan. One option is to continue COBRA coverage for up to 36 months after the divorce. Or you can reach out to an insurance agent to explore other coverage options.
Update Will and Estate Planning: Most married couples have each other listed as beneficiaries in their wills and other financial planning documents. After divorce, it’s a good time to update the will and change your beneficiaries, healthcare directive, and Power of Attorney.
Finalize the Divorce Decree: The terms listed in your divorce decree outline the agreement you and your former spouse must follow post-divorce. Follow through to check on the transfer of property and investments as outlined in the divorce decree, including joint accounts, investments, retirement plans, real estate, personal property, and more.
A Divorce Attorney Can Help
There’s no question that divorce can be challenging in many ways, which is why you must be proactive about protecting your personal interests. Many people benefit from legal assistance as they are navigating this process. Contact our experienced divorce attorneys at Miles & Hatcher, LLP, to book a free consultation: (909) 481-4080.