Minnesota residents who are going through a divorce know what a painful experience it is. The early stages of a divorce come with a variety of emotions.
Anger, loss, shock, confusion and panic are common feelings during a divorce. It is often an emotional rollercoaster with individuals feeling up one minute and down the next.
Dividing marital property is one of the most difficult steps of a divorce. Because the process is so emotionally charged, an individual may feel they may be more deserving of some assets than their former spouse may. It is important to not only think about dividing assets, but remember to calculate the effect of all joint debts and loans, as well.
Divorce carries with it significant economic changes for a couple, who now have to create two households from the same financial resources. It is important to look past the emotional turmoil to ensure you don’t make any mistakes that make your financial situation more challenging.
Steps to Guarantee Financial Stability
Finances are a cause of much stress during a divorce. However, there are helpful tips to help ensure financial stability after the divorce.
Once your divorce is complete, or, sooner if you’ve consulted with your attorney, you may update any accounts with new name and address information. Depending upon the terms of your divorce decree you may need to remove your former spouses name and close joint accounts. Wills, trusts, or medical directives may also need to be updated. You divorce attorney can help you with a checklist to make sure nothing is overlooked once your divorce is final.
It is also important to build up your own credit. Obtain a current copy of a credit report immediately and correct any inaccuracies. If you are working, maintain good credit habits, such as paying off credit card balances immediately. If you are not working, it is all the more important to practice good credit habits.
Additionally, seek assistance from a reputable financial advisor, preferably one who is experienced in setting up post-divorce financial plans. The advisor can assist with setting up a complete financial plan. They can also help with developing a viable budget in recognition of your post-divorce financial limits.
A financial plan should include short-term needs such as paying monthly bills as well as long-term considerations. Retirement needs and responsibility for children’s college tuition are matters that may be worked out in the divorce settlement.
Health insurance is another consideration. If health insurance is no longer provided by a former spouse, your settlement agreement should consider this expense and you should explore your post-divorce options.
It is important to work out all of the financial complications of your divorce prior to the final approval of the settlement, as absent a showing of actual fraud on behalf of your former spouse, property settlement terms set forth in your divorce decree are final.
Finally, if necessary, seek out other professionals for assistance as well. Vocational advisors, therapists, and estate planning attorneys can provide essential guidance with these issues.
Individuals going through a divorce know what a significant financial and emotional toll the process brings. This is why an experienced divorce attorney is necessary. The attorney can provide knowledge and guidance as well as assist with obtaining the best possible financial outcome.