Financial steps to take during a divorce
Divorce is a time consuming, nerve wrecking and mentally exhaustive event. You would have to cope with idea of divorce, during divorce and take the event in your stride. While filing for divorce, no one wants to spend extra money and increase the anxiety of divorce. During divorce one should keep emotions like fear, despair, hurt and anger away and focus on the future.
On of the most important financial step to take during divorce, is to pay close attention to the assets you own and your current financial position.
Financial steps to take during a divorce-
- Open individual bank, credit card and brokerage accounts: It is very important to open individual bank accounts before your divorce is final. It is an easier option to get a bank or even a credit card account in your name while you are yet married to your wife.
- Close all prevailing joint accounts: During divorce it would be wise to close all the joint accounts. It would be essential to close the accounts in writing and inform the same to credit bureaus. You should remember it is also important to close joint accounts, since it would be safer for your financial future. If you are connected with your ex-wife financially, you would be at a greater risk financially.
- Change beneficiaries on policies: One of the most important aspect, which needs attention, is to change the beneficiaries on your will and other important policies. It would be vital to change your beneficiaries in your will, trust, pension plan, and IRAís and life insurance policies. If you donít change your beneficiaries your ex-wife would get a huge bonus after your demise. It would also be beneficial to review your policies and make the required changes. Remove the name of your ex-wife where ever necessary.
- Safe guard your health coverage: Donít sacrifice your health care coverage under any circumstance. You should keep in mind that when you are uncovered, medical emergency and be a huge blow to your finances. For health coverage you can opt for the COBRA plan, under which one is guaranteed around 18 months of health coverage. With a proper health insurance, you would be on the safer side in regard to your health.
- Check your retirement: You should be contacting social security administration, especially if you are nearing retirement. If you are 62 years of age and you were married for around 10 years and you have not married again you can get benefits on your ex-wifeís social security record. In cases if you are raising a child less than 16 years from your marriage you are also liable to receive benefits on your ex-wifeís record. Similarly you can also expect the same benefits, if your ex-wife dies.
If at any point in time you are unable to secure yourself financially, it would be beneficial for you if you take help from financial experts and financial advisors. Financial experts would be able to provide you with the right advice to stabilize your finances during divorce.