Important Steps for Financial Stability After Divorce

September 13, 2012 (Press-News.org) Minnesota women going through a divorce know what a traumatic experience it is. The early stages of divorce can bring a combination of emotions such as anger, betrayal, loss, shock, confusion and panic. Divorces are often an emotional rollercoaster and it is common to feel "up" one minute and "down" the next.

Divorces involve not only emotional issues, but financial as well. Often women experience a significant decline in income after a divorce. This can lead to numerous financial difficulties.

Newly single women may find themselves overwhelmed by the financial items that must be addressed. Fortunately, there are many steps women can take to ensure financial stability after a divorce.

One of the simplest but most important tasks is to update all accounts with a current name and address. Along with frequently used items such as credit cards and a driver's license, it is important to remember to update information on lesser used items such as car and mortgage titles.

A former spouse's name should also be removed from all accounts. Any joint accounts should also be closed as soon as possible.

It is also important to build credit as a single individual post-divorce. First, obtain a copy of an updated credit report. Next, begin the process of rebuilding credit.

This is easier for a woman who is already employed. Use credit cards frequently and pay off the balances each month to continue to build up credit. For unemployed women, the process may be slightly more complicated.

Wills and trusts must also be considered. These items should be updated with any new beneficiaries. It is also important to modify pensions and 401(k) accounts.

Insurance is also a common issue during a divorce. Many women find themselves without health insurance. When planning a budget, a health insurance account should be included if possible.

Additionally, a majority of women receive alimony also known as spousal maintenance or child support payments after a divorce. When choosing an insurance policy, it is important to keep in mind the consequences if something should happen to a former spouse.

Finally, working with a financial advisor is also an option that can help women get on the right track to making sound financial decisions. An advisor can assist with making wise investments as well as developing a realistic budget.

A woman going through a divorce can benefit from an experienced family law attorney. The attorney can provide support as well as assist with obtaining the best possible financial outcome for the situation.

Article provided by Walling, Berg & Debele, P.A.
Visit us at www.wbdlaw.com