Post-Divorce Financial Planning

In many marriages, both spouses are involved in handling the marital finances. Upon divorce, often each person has to handle his or her own matters without the help or knowledge of the other. This can be a substantial change. Financial counseling may be helpful to navigate this new territory. Following are some things to think about:

Divorce can be financially difficult for both parties, and it may be necessary to reenter the workforce after a period of time at home. Support payments received may well not be enough income to live on. You may consider financial counseling to create a new financial plan moving forward. Your divorce attorney can often provide you with a referral.

Evaluate your new financial situation and cash flow. Review your income sources and determine what lifestyle changes may need to be made. Create a new budget that reflects the post-divorce situation. What worked before may not work now. Consider consolidating your accounts into one bank for simplicity and better tracking.

Now is the time to change your will or trust beneficiaries and possibly powers of attorney. Update the documents to reflect your new situation. Some family law attorneys also offer estate planning services. Also review all insurance policies, investments and retirement plans to make necessary beneficiary changes.

You can hire a bookkeeper to track your personal or small business income and expenses and pay your bills. This is a service commonly offered by financial companies. Such assistance can save you time to spend on other area of your life. The bookkeeper can also set you up on automatic payments to ensure that bills will not be missed so as to protect your credit score. If cash is needed for an unexpected expense, the bookkeeper may be able to assist you in obtaining a line of credit on a home or investment accounts.

Credit can be negatively impacted during divorce. This is particularly the case if one spouse is placed in charge of making payments that impact another’s credit score. Even one late payment can negatively impact your credit score and increase interest rates offered for future credit.

If one spouse keeps the marital home, that spouse should always refinance in his or her own name. That provision should be a part of every separation agreement. Jointly held credit accounts should be closed and paid off at divorce from marital assets, if available. You can open a new account in your name alone.

An attorney can guide you through Colorado Springs divorce and family law matters by negotiating, mediating and litigating. This allows you to focus on moving forward to a better future rather than on spending your time trying to figure out the overly complex court system. Colorado Springs Divorce and family law matters are difficult to navigate alone. The court system is more complex than it should be. Change can be stressful, however it can lead to a better future. Janko Family Law Solutions helps ensure that your best interests are protected and that you are aware of your legal rights and obligations.

Contact us at 719-344-5523 or complete our online form to set up a free thirty-minute informational consultation.