Divorce Financial Help

Divorce is chaotic, stressful, depressing, and overwhelming.  Worse yet, it feels like most of the time your life is spinning out of control.  

 

But surviving a divorce is not enough; you must also strive to create a peaceful and financially stable environment for yourself and your family.  

While going though divorce, in this already chaotic time, you are required to make crucial financial decisions that may impact you financially for years to come.  

 

As your Certified Divorce Financial Analyst, I can help you move from just surviving to truly thriving!

Divorce Financial Planning

 

The first order of business when going through a divorce should be consulting your financial planner.  At the latest, it should be done in the early stages of the divorce proceedings.

 

This is to allow your CDFA to equip you with the best financial strategies when it comes to the divorce settlement process.

 

As your CFDA, here are some of the things I can do for you:

  • Assistance in completing your financial statements – listing income, expenses and all assets/property, which will be required by the courts.

  • Assisting in understanding the financial ramifications in your settlements.

  • Helping you develop a budget to live on before and after the divorce is final.

  • Identifying what insurance or work-related benefits you currently have, what you may be losing and how to get them on your own.

  • Providing an understanding of how child support and spousal support works.

  • Providing guidance on retirement accounts.

  • Proposing and reviewing the pros and cons of alternative settlement options.

  • Helping you understand your largest asset, the home, and what the mortgage and equity could mean to you in the divorce.

 

Divorce and Insurance

 

No matter how much we want to avoid it, sometimes unfortunate circumstances come upon us and relationships are torn apart. Upon the event of a divorce, your children and assets are the first things that you should consider first.  Whatever the reason for the divorce, a divorce is never easy.

 

Divorce doesn’t end upon separation. The situation is further complicated by the need to disentangle friends, extended families, possessions, finances and, yes, insurance.   


 

How Divorce Can Affect Your Insurance Needs

Your coverage and insurance requirements may change significantly following a divorce especially if you have children.  Insurance is among the financial items you'll likely need to consider, or at least review, during a divorce.

 

And other than health insurance, insurance may often be forgotten.

 

You'll want to make sure the appropriate protections are in place as you allocate belongings, move and begin your separate lives.  It's important to have any necessary procedures done now while you are still covered.

 

You can start by getting your own coverage for health, automobile, and home, and take these expenses into account for your post-divorce budget.

 

Review Designated Beneficiaries.

It’s almost certain that you named your spouse as a beneficiary on your will, life insurance policy, IRA and 401(k). It’s essential that you review and change these documents.

 

You should also consider changing your trustees and powers of attorney, especially if you divorce later in life.

 

Automobile Insurance:

You will need to remove your ex-spouse from the auto insurance policy after the divorce.  You do not want to be held liable if your ex-spouse does something out of the ordinary. Nor do you want him or her to receive any checks if a claim arises.  

 

As for liability coverage, if you have children you may want to increase your coverage amount. Notify your insurer of any changes to the ownership or designated drivers of a vehicle and proceed with the necessary actions

 

Home Insurance:

Upon divorce or separation, and depending on your prenuptial agreement, possessions will be divided between the individuals and, often, at least one of the partners will change residences.  

 

It is important to keep your insurer informed of changes in your residence and possessions so that you make sure you're still protected.

 

Health Insurance:

Depending on the agreement, some divorces usually specify that whoever provided health coverage for the family during the marriage must continue to provide it after the divorce. This spouse may have to pay additional premiums to continue this coverage.

 

It’s always best to review your insurance and avail the necessary remedies that may be applicable to you and your family.

 

Life Insurance:

The owner of a life insurance policy has all rights and power over the policy, such as changing the beneficiaries, borrowing against cash values, and canceling the policy. Your divorce settlement must always address policy ownership.  

 

If you have minor children, it’s deemed best not to name them as the beneficiaries; instead make sure to name a trustee or a contingent beneficiary.  

 

Review your will, life insurance policies and retirement accounts to remove your ex-spouse.  If you have children, you should also review the value of your policies. Children of single parents may be more prone to financial difficulties if a parent passes away.  

 

You need to choose an affordable premium that also offers long-term financial security for your child if needed. And regardless of what type of insurance policies you are considering or changing, make sure to thoroughly do your homework.

 

For Divorce Financial Help - Call Kimberly Surber Now

 

Contact me today to set up a free consultation.  You can reach me at 97-347-3860, or you can email me at divorce@kimberlysurber.com

 

Tags: Divorce financial help, divorce financial planning, divorce and insurance, divorce financial planning

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DISCLOSURE

Kimberly Surber is a Certified Financial Planner®  and a Certified Divorce Financial Analyst®; however such registration does not imply a certain level of skill or training and no inference to the contrary should be made. Information presented is for informational purposes only, does not intend to make an offer or solicitation for the sale or purchase of any securities, and should not be considered investment advice.  Kimberly Surber has not taken into account the investment objectives, financial situation or particular needs of any individual investor. There is a risk of loss from an investment in securities, including the risk of loss of principal. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular investor's financial situation or risk tolerance. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed here. Past performance is not indicative of future results. Investments involve risk, including loss of principal and unless otherwise stated, are not guaranteed. Information provided reflects Kimberly Surber's views as of certain time periods, such views are subject to change at any point without notice. For a copy of our Privacy Policy, see below.

Kimberly Surber provides informational articles not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation. Kimberly Surber is not responsible for the consequences of any decisions or actions taken as a result of information provided in these articles and does not warrant or guarantee the accuracy or completeness of the information requested or displayed. External Links are not affiliated with Kimberly Surber.

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