04/28/2018
Divorce is an emotional roller coaster. You can help yourself feel more confident about your financial consequences by following these few steps, at whichever stage you find yourself:
BEFORE A DIVORCE
Make a list of all accounts and balances -- Gather account statements, all insurance documentation, property titles, Mortgage Statements, Credit Card Statements, past Tax Returns, Passports, Birth Certificates, Online Account IDs and Passwords, etc. Remember, it’s better to have it and not need it than to need it and not have it!Create a budget for your current lifestyle. You can’t determine what you need if you do not know how much your existing lifestyle costs. Ex. You don’t want to take the responsibilities of a house if you can’t afford the upkeep.
DURING A DIVORCE
Change all passwords for online account access -- Explore all options to dividing assets and liabilities. Review various ways to divide a 401k or Pension Plan, before making a choice. Ask about taxation of alimony vs. child support, pros and cons of lump-sum settlements. Make certain Life Insurance Policies are cross-owned and cover the full-life of the obligation.
AFTER A DIVORCE
Revise all wills and trust documents paying special attention to powers of attorney -- Review all beneficiary designations and set up a trust if minors have become beneficiaries.Obtain a copy of your credit reports 30 days after the final judgement to ensure all joint accounts have been closed.
Be kind, be firm, and be finished. Make choices that will minimize negotiating with your soon-to-be ex-spouse. The sooner you finalize your divorce and move forward the better.