Navigating the Financial Burdens Through a Divorce
Divorce is not easy; it is a stressful time for anyone to undergo. This is expected to be amplified for women. Pew Research found that in the US, women’s financial contributions to marriages have steadily been increasing in the last four decades though men still earn more in 69% of heterosexual relationships. Typically, women’s finances take a bigger hit than the man in a divorce. This impact can affect one’s Social Security benefits, retirement savings and credit scores. Keep reading to better prepare yourself and take some considerations before, during and after you file for a divorce.
It is important to prepare for your divorce emotionally and financially.
- Build a circle of trusted people around you. Your friends and family will be there for you, but one person to add to your circle is a professional support system. Counselors can give emotional support as a financial advisor can help you in financial support.
- Gather all documentation. Gather and organize your legal and financial documentation for easy access.
A divorce takes just around a year to finalize according to Nolo.com. The following tips will help you through your divorce while you are in the midst of it.
- Practice self-care. It is appropriate to grieve and process through the rush of emotions. Find a new hobby or an activity that creates a positive environment. This can be done through exercising, reading a book and volunteering.
- Think clearly and fairly. If there are any children involved, it is best to think about their feelings and create a stable environment for them. Next step is to think beyond the assets you want and reconsider the assets you are willing to manage. If you want to stay in a family home, consider the budget it takes and the dedication of maintenance.
- Update your beneficiaries. Your soon to be ex-spouse could be entitled to your assets if you have listed them on any previous beneficiary forms. Take the time to change official documents with insurance policies and retirement accounts.
It is time to start new.
- Consider tax consequences. After your divorce, it’s time to consider how filing single will affect your tax bill. Other things to consider is which children are dependent and independent. Are there any joint owned assets? These are all great areas of questions that a financial advisor can help answer.
- Detail co-parenting responsibilities. There are the obvious choices to make about child support, but it is also important to take time to decide which parent will take on responsibilities. This comes down to the small things like who will monitor the children’s social media, or who will come to your child’s basketball practice.
- Surround yourself with ones who will support you. Find this in your personal life and professional life.
- Find a financial advisor to work with you. They can help you and your attorney to ensure that all assets are divided up fairly.
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