How to Avoid Financial Difficulties After Divorce

 Posted on February 17, 2020 in Divorce

Divorce rarely comes as a surprise and is often a decision that is made by both spouses after months, or even years, of conflict. Unfortunately, most divorcing couples can see their marriage coming to an end as time goes on. Though this may be difficult to accept for some, most spouses have come to terms with their divorce before contacting an attorney for help. For those who see their marriage coming to a close, it is important to financially prepare for your future. It is no secret that divorce can be an expensive legal process, but with proper preparation, you can be fully prepared for the start of your single life before signing any legal documents.

Re-creating Your Budget

Many families have a budget that they work with on a monthly basis. Whether it is typed up on a spreadsheet or simply an estimate in the back of your head, this budget will have to be revamped for those going through a divorce. This budget may look different during your divorce to accommodate for any legal or court fees that you may incur during the divorce process. Having an idea of a post-divorce budget is a good way to start your new life. In most cases, this budget cannot be nailed down until after you and your divorcing spouse have discussed spousal and child support payments as well as the division of assets.

Updating Official Records

In the midst of a divorce, it can seem overwhelming when you realize the number of legal and financial documents that need to be changed. With the help of your attorney, adjusting this paperwork can be done much easier. This may include contacting your workplace to notify them of your changing marital status so that they update your insurance and 401(k) plan. If you have a will and/or powers of attorney, you will need to be sure that your former spouse is removed from them immediately. Many forget this step and do not realize it until they are in the midst of an emergency situation.

Re-examining Your Coverage

It is typical for one spouse to take the reigns of securing insurance and examining your package’s benefits. Whether you were the spouse in charge or not, you will need to take another glance at your insurance coverage and plan. If your family relied on your ex’s health insurance plan, you may need to look into finding a personal plan that fits your needs. This is another area that can get put off during the divorce proceedings but should be addressed sooner rather than later.

Call a Joliet Divorce Lawyer For Help

Since most people only get divorced once in their life, the legal process can feel as if you are navigating unknown territory. Whether or not you and your former spouse had healthy finances throughout your marriage, it is important to take matters into your own hands and re-examine your economic situation when your ex is out of the picture. At The Foray Firm, our family law attorneys assist clients in all areas of divorce, including the financial side of things. Our legal professionals have the tools and resources to help you get through your divorce and come out with healthy finances on the other side. If you are considering divorce, contact our Homewood, IL, divorce attorneys at 312-702-1293 for assistance.

Source:

https://www.cnbc.com/2019/06/26/financial-cost-of-divorce-5-steps-to-staying-ahead-of-money-mistakes.html