June 6, 2016

Financial Security after Divorce

Divorce Finances

If you are going through divorce or anticipating marital dissolution, there are seemingly hundreds of things to think about and to plan for. Figuring out your post-divorce financial plan is one of the most important things you can do to ensure that you are set once the divorce is finalized and you are living on your own, for what may be the first time in a long time. Remember that, depending on how long you were married, you may be returning to an entirely different financial climate than when you were last fiscally independent; even if you have been separated from your spouse for a significant period of time, it can be shocking to learn just how many different financial considerations there are to make in everyday life that affect your long term financial solvency and security.

This can be particularly challenging if you were not the primary breadwinner in your marriage and you are now facing the prospect of not only dealing with your finances independently for the first time in several years, but also the prospect of potentially having to earn it. If you are going through a grey divorce, there will be a whole unique set of financial considerations to make regarding shared retirement funds and asset distribution.

As stated, this is particularly challenging if you were not the primary breadwinner in the family, a situation that disproportionately affects a greater number of women than men. While the rate of women who are the primary earners in her family is definitely increasing, women are still outnumbered by men when it comes to being both in the workforce and having a family, and still make considerably less in the workforce for doing the same job. If you have children and are getting divorced, this is important to consider, as the activities that you used to take for granted with your children, based around a husband’s salary or shared income, will likely need to be reconsidered.

Ensuring that you have a separate bank account, credit cards open in your non-married name (if you are planning to change your name after divorce), and separate retirement and savings accounts is crucial. You will also need to consider opening separate health and life insurance accounts, so that your children will be taken care of. Building credit in your non-married name will be essential if you ever plan to buy property or a large purchase, such as a car.

If you or someone you know is going through divorce and has financial questions or any others, the most important step is to seek legal counsel. Do not go through it alone. Contact an experienced DuPage County family law attorney today.