Tips to protect your financial future after a divorce
After a couple divorces, each spouse typically has to take on new responsibilities previously handled by his or her former significant other. Many married couples divide tasks between themselves, but must take charge of every important area of their life following a divorce.
For instance, it is not uncommon for one spouse to keep track of the finances in a marriage. When the marriage ends, it is critical for each spouse to ensure they have a good understanding of where they stand financially and how to maintain control of their financial future.
Take charge of your finances
When it comes to protecting your financial stability, there is more to it than simply trying to save more on a monthly basis. While it is wise to try to increase your savings following a divorce, there are a number of other factors that ought to be considered as well.
First, you should consider your insurance needs and whether they are still being met post-divorce. If you previously were on your spouse’s health insurance plan, you should find alternate health insurance coverage.
If you also work, you should be able to enroll in a health insurance plan through your employer, even if the open enrollment period has passed. Major life events – including divorce – do not require an open enrollment period to change health insurance needs. If you are not currently employed, you can buy coverage through COBRA, while you make plans for obtaining long-term health insurance coverage.
In addition to health insurance, you should also consider life insurance needs following a divorce, particularly if you have children. If you already have life insurance, you likely will want to amend the beneficiary information, as many married couples will have listed their significant other as the beneficiary. The same holds true for wills and retirement plans, such as IRAs and 401(k)s.
Finally, as divorce offers a fresh start in many ways, you should face your financial future in much the same way after divorcing. Now is a good time to reassess how you handle your finances and make some helpful changes. For instance, if you previously had difficulty saving money, consider putting a certain amount of money away for retirement every month.
Understand Texas divorce law by consulting with an attorney
Of course, you should also ensure your rights are protected and financial considerations are taken into account during the divorce proceedings. Seeking the advice of a family law attorney is a wise step in ensuring your financial future is protected.