A divorce is one of the most difficult transitions you can go through. When you add uncertainty about money, that transition can get even more stressful. Here are six steps to help keep your finances intact during—and after—a divorce:
Step 1. Assess your finances and make a budget
- Review your income, retirement accounts, investment portfolio and insurance policies
- Make a budget that reflects your income and monthly expenses
Step 2. Target shared debts first
- Joint debt can be problematic regardless of what the agreement says
- Debt on joint accounts can be problematic
- Make sure the joint debit is divided and in correct name of debtor
Step 3. Divide assets thoughtfully
- Divide assets accordingly
- Including Tax Liabilities
Step 4. Review your retirement goals
- Review any changes necessary to your Retirement goals
- Implement any new changes
Step 5. Revise your will and other documents
- Update your beneficiary designations
- Designate your new beneficiaries
Step 6. Make a Plan B
- Keep money in an emergency fund to cover unexpected expenses
- Also ask you lawyer about ways to guard against nonpayment in the divorce agreement
I understand that this is a difficult time emotionally and financially. If you are looking for additional guidance reach out! I. would love to discuss how we help clients through divorce.
