No one can fully understand how you feel while going through a divorce, from the emotional turmoil to the fear of uncertainty—it’s a living nightmare. What is important to remember is that you do not have to go through the divorce process alone. From financial planning to counseling, there are many organizations offering help lighten your burden.
Services providing financial planning for divorced women are necessary for a successful separation. On average, female employees still earn less per dollar than their male peers for the same job, making short-term expenses harder on them, which can have lasting effects without knowing how to financially plan for a divorce.
Read on for helpful tips during this challenging and difficult time that can provide you with a bit of assistance for financial planning as a divorced woman.
Financial Planning for Divorced Women Tip 1: Understand Your Income
A family court judge may decide that you are entitled to spousal and/or ongoing child support, but in the majority of cases that income is not enough to survive. As part of your financial planning as a divorced woman strategy, you still need to budget for living expenses such as rent or mortgage, property taxes, car insurance, and others.
Furthermore, there are expensive legal services and other fees related to the divorce process. A divorce advisory service company can help you navigate the complexities to determine your financial rights and the impact of a prenuptial agreement if one is in place.
Don’t rush the steps for your financial planning as a divorced woman.
Financial Planning for Divorced Women Tip 2: Plan Financially for a Divorce Long Term
Ask yourself: How do you envision your financial status post-divorce? The income you may get from a divorce settlement eventually ends. Financial planning for divorced women can be does not have to be short-sited. A common mistake is fighting for the house but not accounting for affordability post-divorce. Take a step back to determine how to financially plan for a divorce pre and post with big-ticket items. If resources permit, connect with a divorce advisory service to help understand what expenses you will have to cover from the routine to the big-ticket items.
Financial Planning for Divorced Women Tip 3: Account Name Management
When you were married, you likely went through the process of changing your name on accounts and in some cases on combined financial assets. After the divorce, it is essential to undertake, again, the name-changing process when it comes to financial planning for divorced women.
Legally, there are many important documents, such as Social Security Card, titles, deeds, bank accounts, driver’s license, and passport, which you must update. It’s a cumbersome process. A divorce advisory service accompanies you on this journey, making the document-finding mission more manageable and reducing your stress after an already difficult situation.
What Else to Consider With Financial Planning for Divorce Women
Shred-it – Identify theft is expensive. You have old documents with your former name and other personal identification markers. ID theft can cost you thousands of dollars and annually costs Americans billions. Financial planning as a divorced woman is stressful enough, but not properly disposing of sensitive information will cause you unnecessary nightmares. Depending on where you live, some towns provide free shredding services.
Clean your computer – Programs like Eraser will destroy sensitive files on a computer or electronic devices that, after the divorce are no longer in your possession. They can also clean up your Internet browsing history, too.
Credit score – Your finances have been entwined with your former spouse, and that can have an impact on your credit score and your efforts to financially plan as a divorced woman if not properly addressed. Free credit reports are available online or you can pay for this information to find any problems with your score to address it as fast as possible.
Joint accounts – While logically it may make sense to keep a joint account open because you have kids with your former spouse, it is ultimately best to separate from that partnership. These accounts can become a liability that will put a wrench into your financial planning as a divorce woman strategy. You’re divorced, separate your finances as well.
For more information on financial planning for divorced women, contact Green Ridge Wealth Planning today.