Post-Divorce Financial Planning Tips
A divorce is an extremely difficult process for a couple to endure and will affect many aspects of a person’s life. One of the more challenging aspects for a newly divorced pair can be the lifestyle adjustment going from two salaries to one can bring, so it is crucial to know how you can rebuild your financial life and independence. The following are six tips to help you get started:
- Create a financial plan. During the divorce process, many decisions regarding finances were likely made, such as child care needs, expenses, or assets. Review those costs, while factoring in any child or spousal support, and adjust accordingly to reflect your single-status.
- Separate your finances. Double check to make sure any joint accounts have been closed, and open accounts in your name to begin rebuilding your own credit history. This financial “separation” should also include things like updating wills and beneficiary information, changing the name on utility bills to reflect who’s responsible, and changing the info on a vehicle’s registration and title.
- Review your insurance. Now that you’re on your own, get any necessary insurance to protect yourself and your property, such as health, car, or homeowners/renters insurance.
- Get a copy of your credit report. Get your annual free copy of your credit reports from the 3 major credit bureaus (Experian, Transunion, Equifax) and make sure closed accounts are noted and any other updates have been reported, such as a post-divorce name change.
- For retirement plans … speak with your 401K or retirement account provider to make sure that is updated as well and you’ve established an account for funds to be transferred to.
- Speak with an accountant or personal attorney … to discuss any potential tax ramifications from the divorce and to ensure any joint tax responsibilities from the marriage were filed.
Making sense of your finances following a divorce can be difficult, but anyone newly divorced is fully capable of reestablishing their financial well-being. However, if you are still going through the process of a divorce, financial matters can be just one of the issues of contention for a couple and can complicate an already tough process. The Pennsylvania divorce financial and tax issues attorney Sheryl R. Rentz has years of experiencing helping those going through a divorce with any financial or tax issues that may arise and can apply her extensive knowledge to your case. For a free consultation, please call (610) 645-0100.