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Divorce is a good time to reconsider financial goals

On Behalf of | Jul 2, 2018 | Divorce |

Missouri couples going through divorce may use the separation process as an opportunity to reconsider financial goals and, if necessary, set new ones. While divorce is an emotionally-charged process, it is important not to forget that it will change all aspects of life, including financial stability.

The first step in reconsidering financial goals during a divorce is to evaluate and confront the reality. Each person needs to consider where they stand and how that will change once the divorce happens. This is the time to estimate what expenses will be like and how they will have to be met. During this period, it is a good idea to evaluate all accounts, including debt accounts, and outline a budget for monthly bills, including household expenses such as housing, transportation, food and insurance.

Step No. 2 is to review retirement planning. The divorce process usually means upheaval for retirement plans, but it also presents an opportunity to make solid plans for a more secure future. One opportunity is to maximize retirement savings in 401(k) plans. Future social security benefits should also be reviewed as it is possible for people who were married for 10 or more years and do not remarry after divorce to be eligible for benefits based on their ex-spouse’s income. Lastly, divorce should provide impetus to update beneficiary and power of attorney forms. Many people forget this crucial step, which can lead to complications later on.

For those who are divorcing and want to reconsider their financial goals, a lawyer with family law experience could offer valuable assistance. An attorney can help a client maneuver through all the legal forms and provide advice about all the options available.

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