While managing finances can be challenging, going through a divorce can make this process even more difficult. Emotional and mental stress, adding additional expenses and planning for a new future are all financial challenges that often come with the divorce process. Here, the family law attorneys at Rodier Family Law highlight why it is important for you to seek out financial advice from a qualified advisor if you are currently going through, or preparing to go through, a divorce.
Create a Budget That Works for Your Lifestyle
Having a well-planned budget is something that is important for everyone in order to save for the future and meet financial goals. When going through a divorce, your household income and monthly expenses will likely alter in one way or another, so ensuring that you have outlined a budget—and that you follow it closely—is critical. If your former spouse was the one who primarily handled the finances, there are plenty of helpful budgeting apps to help you become finance-savvy, including Mint, Wally and many more. Alternatively, it could be helpful to consult a financial planning professional.
Consider Consulting a Finance Professional
It is also best practice to begin thinking about future expenses and your long-term financial goals when you begin the divorce process. A financial planner can help you understand the expected costs of a divorce and assist in preparing for potential expenses like legal fees, alimony payments or child support. Also, depending on your unique situation, a financial planner can help you prepare for your long term future and advise you in terms of saving for retirement or setting up college savings accounts for your children.
Begin to Establish your own Credit
It is not uncommon for divorce to have an impact on your credit score; you may find that removing your name from joint accounts or established credit history causes your credit score to take a hit. Regardless, a divorce presents the opportunity to re-establish your personal credit by opening a bank account or credit card in your name.
Update Estate Plans and Important Documents
It is very common for your spouse to be named as power of attorney, medical power of attorney or beneficiary of your estate, especially if you have been married for a long time. It is important to update your will and other documents in your estate plan to reflect the new person(s) that you would like to replace your spouse in such roles. You will also want to ensure that you have prepared specific financial plans for your children at this time. Retirement accounts and life insurance policies are two common examples of things that likely require adjustments during divorce, as they play a large role in the financial future of your children.
Retain a Quality Family Law Attorney in Addition to Working with a Financial Planner
Having an experienced attorney is imperative during a divorce, not only for managing financial expectations, but also to ensure that you seek to achieve the financial security to which you may entitled. The attorneys at Rodier Family Law will work with you and your unique situation, and they have invaluable experience in assisting clients though all facets of family law, including divorce and estate planning. If you are going through a divorce and are in search of quality legal representation, contact us today for a free consultation.