Tips to Rebuilding Financial Stability In the Wake of Divorce

Tips to Rebuilding Financial Stability In the Wake of Divorce

 

 Once your divorce is final, you are in a position to take some steps that are easily overlooked yet can be significant in rebuilding your financial stability so you can be successful in the new phase of your life. Local certified divorce financial analyst, Karen Mendez, of Wedbush helps clients navigate the murky waters that can come with divorce and offers this tip sheet to help put you on firmer financial footing.

Establish your own relationship with some professionals to hire such as a financial advisor, CPA or estate-planning attorney. You may also need to find your own real estate broker, mortgage broker, banker, doctor and dentist whom you trust and feel comfortable with.

Determine what money is coming in and what money is going out so you can get a handle on what it costs to support your new lifestyle.

  • After reassessing the amount of money needed to support your lifestyle you will have a clearer picture of what you can afford for the roof over your head. That may mean renting versus owning.

Get all of the assets awarded in the divorce transferred into your name. You may need to change your name on your social security card and IDs such as your passport and driver’s license.

  • Review the beneficiaries you have named on all of your financial papers including your IRAs, employer’s retirement plans like 401k’s or 403b’s, annuities and insurance and make necessary changes.

Update or establish your own estate planning documents. These are legal documents related to your estate such as a will, living trust, power of attorney and health care directive.

Check your credit report by requesting one at 1-877-322-8228. From there you will be able to learn your credit score and what accounts your name is on.

  • In the marriage couples typically have had credit in joint names and once the accounts are separated you may learn you have little or no credit history in your own name.
  • If you do not have separate credit after divorce you would be wise to establish your own.

Rely on the CPA you hire to help you through the maze of filing taxes. After divorce your entire tax filing status has changed and you can relieve yourself of some stress by working with a professional who will guide you properly.

Once you have figured out what your “new” lifestyle costs to maintain, some longer term financial planning can take place.

  • A written financial plan gives you a roadmap that lays out where you are today compared to where you want to be at some point down the road and a path that connects the two so you can see where you are headed.

Establish a new investment strategy based on your own temperament, goals and time frame.

Karen Mendez can be reached at 858-292-7354, karen@karenmendez.com, www.karenmendez.com, www.linkedin.com/in/karenmendez1

About Karen Mendez

 

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