Divorce changes the lives of the people who experience it, in both positive and negative ways. Though the emotional aspects of a divorce shouldn’t be ignored, it is important for those who are parting ways with their partners to consider how this event will impact their finances. There are several actions that need to be taken and Michigan residents going through a divorce can help put themselves on solid financial footing by paying attention to each one.
Planning ahead for divorce’s impact
Several tasks should happen right away, even before the divorce becomes final. People getting a divorce may have to look over their budget and determine whether they need to make any changes in spending or income, especially if spousal or child support is part of the picture. For those who have children, it may be tempting to put off planning for their college or other large future expenses, but making choices now will help everyone down the line.
The next area to look at involves financial accounts, such as those for insurance, retirement and more. Those who are newly divorced need to consider not only how they will obtain insurance for themselves and any children they have, but who the beneficiaries of any life insurance policies or retirement accounts should be. These accounts and designations may need updating to reflect a person’s new life circumstances.
The future can look bright post-divorce
Retirement and other considerations for the future come next. After divorce, a person’s priorities for the future may shift, necessitating a shift in saving for that future. Considering one’s goals and dreams decades into the future will guide today’s actions. Paying for those dreams will take careful consideration, but it will be worth the effort.
Above all, it is a good idea to work with professionals to help honor one’s financial priorities, such as a financial advisor. A family law attorney is also an excellent resource for those concerned about their finances after divorce. Taking action now may help set up a brighter tomorrow.
