Checklist: The Financial Impact of Divorce or Separation
Gain an understanding of the exact amount of income reduction you will experience, the asset division that you will undergo, and the legal and professional fees that you may encounter.
To tackle the changes within your financial situation, it is important to create a new budget, to understand your needs vs. your wants, begin to prepare for new living expenses and arrangements, and update your financial goals.
Understand the court, attorney, and document fees that may occur. Understand how much these costs will come to, and make a plan to pay them off.
Open individual accounts to reduce confusion and protect your personal finances, monitor your collective debts, and close or work out a plan for joint accounts and finances.
Gain an understanding of the collective and exact costs that may occur, consider all extra costs such as educational and medical expenses, and keep documentation of payment agreements to avoid legal issues and disagreements.
Update beneficiaries, estate plans, and retirement plans to stay current with your marriage status and long term plans.
Going through a divorce or separation is a major life change which can cause emotional and financial stress. Seeking support from a financial advisor or therapist can help you move forward and feel a sense of comfort. Making sure that you are also staying on track to reach your financial goals, and practicing healthy financial habits.
Make sure that you are keeping track of your financial documents, that you are readjusting your plans to match your circumstances, and do not hesitate to consult a professional if needed.
**For information purposes only. Always consult a healthcare, financial, investing, tax, or legal professional, as this content is not a comprehensive resource on these topics, should not be relied upon, and should not be considered medical, financial or legal advice. No guarantee or any warranties or representations as to the accuracy, applicability, completeness, or suitability for any purpose of the information contained herein is provided.
