Adjusting to Life After a Divorce

There's no doubt about it --

Going through a divorce can be an emotionally trying time.

Ironing out a divorce settlement, attending various court hearings, and dealing with competing attorneys can all weigh heavily on the parties involved. In addition to the emotional impact a divorce can have, it's important to be aware of how your financial position will be impacted.
Now, more than ever, you need to make sure that your finances are on the right track. You will then be able to put the past behind you and set in place the building blocks that can be the foundation for your new financial future.

Review this infographic to see our top tips and ideas to help women manage their finances during and after divorce.

Assess your Finances
Cost of divorce
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The average divorce can cost this much per person (uncontested)
 
A contested divorce can cost over $100K if there are children and large assets involved. 
establish a budget
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Know your income sources. Keep in mind that you may need to cut back on some discretionary expenses (aka luxuries) until you adjust to your new situation.
knowledge is power
all assets are not equal

 Confident woman divorce question marital split

A 50/50 division may sound fair, but liquidity and taxability can drastically impact your future net worth.
Walk into negotiations knowing the nature of the assets so you don’t get blindsided later.
your settlement could cost you

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The assets and responsibilities you are splitting can have a big impact on your tax return. IRAs, Brokerage accounts, spousal support, child support and child deductions can alter how much you pay Uncle Sam.
Know the ramifications before you settle.
life goes on
keep an eye on your credit
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  • Review and Check Your Credit Report
  • Make All Credit Payments On Time
  • Don't Apply for New Credit Cards You Don't Need
A positive credit history is important since it will allow you to obtain credit when you need it. It may even be a prerequisite for a job that you want.
know where you are coming from

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Divorce is a time of charged emotions.
Anger, sadness, fear, uncertainty, guilt, and anxiety.  
Allowing these emotions to guide your decisions will almost certainly lead down an unpleasant road.
time for some help
update YOUR beneficiarIES
Divorce is a time to update your willAs with all significant life changes, it is time to revisit your will and estate plan. 

Make sure that your former spouse isn’t still named as a personal representative, successor trustee, beneficiary, or holder of a power of attorney in any of your estate planning documents, or as a beneficiary on any of your other accounts and insurance policies.
don't go it alone
Consult a financial advisor before, during and after divorce to help you understand the financial impact of you new circumstance.
Sonya Ranker Certified Divorce Financial Planner Analyst
 
The right advisors – attorneys, financial advisors, accountants – can help you avoid making costly mistakes during your divorce and planning for your next steps.

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