Create a new financial plan following a Nebraska divorce

April 27, 2013

Create a new financial plan following a Nebraska divorce

Article provided by Thompson Law Office, PC, LLO
Visit us at http://www.thenebraskalawfirm.com

In a Nebraska divorce, the marital assets are divided equitably between the spouses. In addition to the property settlement, in some cases one spouse may receive alimony, which provides continued support when the economic circumstances of the parties make it appropriate.

When considering whether alimony is necessary, the court reviews the length of the marriage, contributions of each party, including childcare and education, interruption in educational or career opportunities and the ability of each party to obtain gainful employment.

Following a long-term marriage, alimony is common when one spouse gave up employment advancement opportunities or worked part-time to attend to children. Often there is a disparity in income between the parties. As more women earn as much or more than their spouses earn, it is also becoming more common that they must pay child support or alimony.

After the property division, child support and alimony determinations, it is important to re-evaluate your finances and put in place a new plan to obtain your financial objectives.
Creating a new budget

Evaluate your income sources and start considering your fixed expenses. As part of the process to create a new plan, experts recommend opening your own checking, savings and retirements accounts. Change the ownership of any property and vehicles. Close all joint accounts, including credit cards, and refinance any mortgage or vehicle loans you received in the divorce.

Plan to pay down debt. Start with the balance that has the highest interest rate first. Once you have paid off the debts, allocate those same funds to building your savings. Proactively adjusting your lifestyle and budgeting to reflect your new circumstances, will keep you from falling into a debt spiral.
Review insurance policies

Make sure that you change the beneficiary on any life insurance or retirement plans. If you are without health insurance, contact the Human Resources department at your employer to learn about available options and to enroll in a company plan. Divorce usually is treated as a major life event, but you may only have a fixed window of time to apply.

If your employer does not provide health insurance, you may want to price out the cost to purchase temporary health benefits through COBRA. In addition, even though Nebraska Governor Dave Heineman decided against creating a state-run health insurance exchange, Nebraska residents will be able to purchase health insurance through a federal exchange starting October 1.

A review of disability and long-term care policies will also ensure you have adequate protection in the case of an unexpected injury or illness.

Obtaining an equitable property division and seeking alimony are ways to protect your financial future. A family law attorney can review any proposed settlements and ensure that your best interests are protected.