Divorce can be a trying time, but it can also be the start of a new beginning, both emotionally and financially. To prepare for life after being a couple, divorcees in Florida have a number of things to consider as they embark on a new stage of their lives. After all, they may have less income to live on, and more financial obligations. Because of that, planning is essential. This post will explore several important elements.
Create a post-divorce budget – It is important to know what’s coming in and going out…even if it does not include income from child support or spousal maintenance. Remember, spousal maintenance may not be awarded on a permanent basis, and child support may be sporadic depending on the obligor’s employment.
Get out of debt – A conservative budget may help in eliminating pre-divorce debt, but sometimes more aggressive methods may be needed. Divorcees may have to consider bankruptcy to eliminate some debt (especially debt associated with assets no longer in their possession). Even if bankruptcy is not an option, taking time to create new credit accounts (independent of an ex-spouse) can be helpful in re-establishing credit.
Modify insurance declarations – Once a divorce is completed, changing beneficiaries on one’s insurance policy and estate plans is important. There’s no sense in having an ex-spouse benefiting from your demise. However, if a minor child is listed as a potential beneficiary, an adult must be appointed to make decisions on their behalf.
Consult a financial advisor – Every divorce is different, meaning each party’s financial situation presents its own unique challenges. As such, an experienced financial advisor can chart a plan to help get back to prosperity.
Source: FoxBusiness.com, Starting your financial life over after divorce, March 22, 2013