Divorce Advice: Jeff Landers recently wrote an article in Forbes outlining seven steps for women to achieve financial stability post-divorce. If you’re a woman who has recently gone through a divorce, your life has probably drastically been changing. You may have experienced an emotional roller coaster, and now you’re in full control of your finances. Paying bills, planning for your children’s future, saving and investing all take a considerable amount of effort and planning. Your ex-husband may have been the one to handle all of that, but post-separation or divorce, it’s all up to you. Once your divorce settlement is finalized, Landers recommends these seven financial steps:
- Update accounts: If you changed your name, you’ll need a new Social Security Card, driver’s license, passport and credit cards. Notify your bank, insurance companies, utilities, the DMV, etc. about any address or name change. You may also want to update beneficiaries on your life insurance, 401k, pensions and IRA accounts.
- Develop a financial plan: Make sure you have a firm understanding of your income: any full-time pay, part-time pay, child support, spousal support, etc. Calculate a realistic expectation of what you will spend daily/weekly/monthly. Then think about anything and everything you’ll need to save for. Be realistic. Set budgets and stick to them to avoid sudden crises or stressful situations.
- Build good credit: This is underrated divorce advice and an important step to protecting your financial future. Get a copy of your credit report, use your credit cards and pay them off in a timely manner. That’s the simple way. It’s much harder for women who are not employed full-time and who don’t already have decent credit. If that’s your situation, prepare yourself for the reality that securing credit may be time-consuming and require more than simply filling out an application or making a phone call.
- Seek help from a financial advisor: Try to find an advisor who is experienced in working with women post-divorce. All the components of a financial plan should be approved by a financial advisor. Don’t risk being wrong about your financial situation/budgeting and put your financial future in jeopardy.
- Add other professionals to your divorce team: Many recently divorced women struggle with a lot of the same things, and experienced professionals can truly help with sound advice. An estate-planning attorney, a therapist and a vocational counselor are great options for many women starting their new life.
- To-do items: Obtain a copy of your certified divorce decree. Close any joint credit accounts. Remove your ex’s name/address on all remaining accounts. Research your new health insurance options. Open a new credit/bank account. Disinherit your ex (new 401K, pension, will, medical directives, etc.) Establish a system to track child/spousal support.
- Enjoy your new life: You’ve set your goals and planned for the future. You’re starting a new chapter in your life, so make the most of it and enjoy life to the fullest.
Find more divorce advice articles in the Divorce Guide
