Managing finances after divorce

On Behalf of | Mar 19, 2021 | Divorce |

There may be nothing more unsettling to a person’s financial situation than the end of a marriage. Missouri couples who have made the decision to divorce have many issues to sort out, one of which includes how assets and debts will play a part in individual finances moving ahead as single individuals. There are some things each person can do to face the financial situation directly.

It’s not surprising that divorce could wreak havoc on a person’s day-to-day living. After all, most couples have been used to two-income households which will be cut in half as each moves into singlehood. Each spouse will need to take the time to do these things:

  • Take care of credit. Joint credit cards should be cancelled and each person should establish credit in his and her own name.
  • Change estate planning documents. Unless a spouse wants his or her former spouse to continue to be a beneficiary in a will, it’s important to change that designation.
  • Enlist measures to make sure child support and/or spousal support payments are made. One could arrange for those payments to be automatically withdrawn from a bank account or get post-dated checks from the payor.
  • Refinance or sell the matrimonial home. If a prenuptial or postnuptial agreement is in place, it likely speaks to what will be done with the family home upon divorce. If not, former spouses could agree to sell it or one person can buy out the other person’s share.
  • Make sure retirement plans are split as per the divorce settlement. A Qualified Domestic Relations Order (QDRO) will be needed to divide 401(k)s or other pension plans.
  • Make sure to have a post-divorce team. Even after divorce, many people still need legal and/or financial advice. It’s wise to have professionals to turn to.

With careful planning, divorce doesn’t have to be financially devastating. Having professionals to turn to for guidance and advice is paramount. Experts in Missouri such as lawyers and accountants are the best to ask about how a divorce could impact finances and what can be done to move forward positively.