Divorce Doesn't Have to Chill Your Vibrant Financial Future

August 18, 2012

It can be challenging to move past the end of a marriage. Likely, you'll be feeling a range of emotions, and will have to deal with significant life changes.

Your financial future is one of the utmost long-term concerns after divorce. Two incomes have become one, and one household has become two; resources will be stretched thinner. However, while financial stability is an important issue after divorce, it can be addressed, with the proper planning, in a straightforward manner.

Establish Your Own Economic Presence, Plan Ahead, Build Credit and Get Professional Assistance

Certain aspects of your financial life may require some cleaning up after divorce; part of that is establishing an unequivocally independent financial presence. Update all your accounts and information to reflect your single status -- this means anything that had your former spouse listed (e.g., bank accounts, credit cards, the title to your home). If your name has changed, make sure new personal documents reflect this.

A comprehensive financial plan is the essential building block of a solid economic footing post-divorce. If you had a professional lifestyle analysis prepared during your divorce, it should help you get a clear view of your complete financial picture -- income, potential shortfalls, even expenses that will be eliminated post-marriage. Keep in mind that a favorable divorce settlement can get your new foray into single life off to a good start.

Your financial plan is more than just a weekly household operating budget; it should encompass long-term plans like retirement and college savings. But a sound, short-term budget is a good place to start, and can also help you meet the goal of establishing your own credit. Using a new credit card that is solely in your name is a good way to build credit, but your budget should have enough wiggle room for you to pay off the entire balance each month.

Finally, don't be afraid to seek professional help when you need it. Your divorce attorney can get you started and offer advice. You may also benefit from the services of a financial planner, and an estate planning attorney (a new will, updated medical directives and other estate planning documents should reflect the change in your marital status).

Planning for your financial future after divorce can seem daunting. But with the right help, your divorce does not have to darken an otherwise bright economic outlook.

Article provided by Wolfe & Stec, Ltd.
Visit us at www.dupagecountydivorce.com