How to Come Back Financially After a Divorce

Divorce can be devastating in many ways for many reasons. One such way is financially. You cannot only lose your spouse’s income, but often also retirement and other benefits as well as the safety net of having a partner. There are some key steps you can take to bounce back.

Retirement Planning After Divorce

Just because your divorce might have thrown you for a loop, it doesn’t mean you should throw your plans of saving for retirement out the window. Assess your new (most likely downsized) budget and adjust accordingly so you can continue to set aside money for the future. Questions to ask: Do you have a 40l(k) or a Roth IRA? Stock index funds or bond funds? You might want to look into rebalancing your portfolio.

Credit After Divorce

Take a look at your credit score now that it’s just you. It’s not unusual to see joint debts are filed under just one name. And if you had a low credit score during your marriage you’ll want to build it up now that you are divorced. You might want to consult a specialist on tips to help build your score.

Estate Planning and Divorce

If you’ve put together a will during your marriage it will most likely change now that you’re divorced. Though the marriage might be over, if there are children, they will still need to be protected. Ensure you have designated an executor and clearly stated your beneficiaries, especially if it is not longer your spouse.

Insurance Policies

Review all your insurance policies to make sure everything you want to be covered is and that the beneficiaries are correct. It’s not likely that you will want your former spouse to collect on your life insurance. Also, ensure that you are not paying for health, disability, life, and long-term care insurance on your former spouse if you do not have to. Also check that you have not selected “auto-renew” on these policies.

For advice on divorce and all it’s aspects, you need the expert law firm of Korol and Velen, certified family law specialists. Schedule a consultation today.

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