Important Financial Steps to Take After Divorce or Death of a Spouse

 

Dealing with the separation of a spouse, either through divorce or death, is a difficult and in some cases, a never ending process. While it is healthy to mourn, it is more important to move on. Not doing so could result in emotional and practical troubles.

 

One major thing that could get affected by this is your finances. That's why it's important to take the following steps listed below, in order to assure financial stability and eliminate some of the stress and worry.

 

1. Make a list of your assets.

 

This includes joint or separate assets, including current value of bank accounts, brokerage accounts, investments, automobiles, residences, and valuable antiques including jewelry, etc. This will help you with the preliminary information needed for eventual division of the property, and will help you plan on how to pay off the debts incurred in your marriage. Take everything into account and make copies of files as necessary.

 

2. Estimate your post-death/divorce living expenses.

 

This will help you budget your money wisely. To estimate your expenses, calculate the total of your monthly debt expenses and living costs, including mortgage or rent, subtracted from your after-tax monthly income. The remaining amount would then be your disposable income.

 

3. Separate your accounts from your spouse's accounts.

 

Cancel all joint accounts if you are divorced. If your spouse's poor credit report affects you, find a way to separate yourself from it. Maintain credit in your own name, even before you need it, as a necessary precaution.

 

4. Consider the legal issues.

 

The best way is to get help from an attorney to help you with these issues, like insurance, alimony, assets, etc.

 

5. If you're considering remarriage, make sure to prepare for it financially.

 

This is important, especially if either spouse has significant assets, by then it will be necessary to consult an attorney. It is important to take into account joint property, children from previous marriages, and if considered, a prenuptial agreement.

 

6. Insure yourself properly.

 

Make sure your insurance covers you and your family adequately, because you will never know when you may have an accident or an illness which you didn't include in your budget. Be smart and avoid bankruptcy through this step.