Divorce can impact taxes, retirement funds, bank accounts, credit card bills and a whole host of other financial holdings. For those who divorce later in life, it can be even more difficult to recover financially. A spouse who has been out of the workforce for a significant length of time may find it difficult to obtain employment, and when a retirement fund is split, it can leave both parties struggling to get retirement goals back on track.
Yet, you can recover financially from a divorce. Here are some tactics divorcing couples can use to recover financially from their divorce.
- Begin rebuilding your financial resources immediately, once the divorce is final and all attorney fees have been paid. Live as frugally as possible so you can put away funds to be used in the event of an emergency. It may seem counterintuitive to limit your purchases at a time when you may already have negative feelings about your life in general, but you will be glad you tightened your belt in order to rebuild your security.
- Make sure you have separated money from your emotions or financial issues could cloud your perspective on the future. Of course life is rarely fair, but it is important you not sink into a deep depression every time you must write a check to your ex or boil with anger when the check you are entitled to comes in late. Accepting your financial situation is the first step to improving your financial future.
- Have a solid understanding of where you stand financially. Perhaps your spouse took care of all money matters during your marriage, and you feel as though you are sinking in quicksand as you try to deal with finances on your own. Make an appointment with a professional who can give you a realistic view on where you are financially as well as what you must do to reach your financial goals.
- Make a careful inventory of your current net worth by listing every asset and liability. This will include your bank accounts, investment accounts, outstanding credit card balances and loans and any property you own. Protect your credit by ensuring any joint credit accounts are closed and you have your own accounts. It is wise to check your credit report to know where you stand.
- If you need to improve your career or employment opportunities, don’t hesitate, hoping a great opportunity will magically appear. Take courses, have a new resume professional prepared, explore your future opportunities. Gather your courage and forge ahead, no matter how scary the future appears.
- Make sure you have your financial house in order following your divorce. It is shocking how many people neglect to rewrite their will, change the beneficiaries on their life insurance policy and review their retirement plan following a divorce. Nobody enjoys taking care of these tasks, but think about it—how would you feel if something unexpected happened to you and your ex benefitted from that tragedy rather than your children or others you would choose as a beneficiary?
A Boulder divorce attorney is a valuable resource not only during your divorce, but after as well. Discuss your financial situation frankly with your attorney; he or she can likely point you in the right direction of a good professional financial planner and/or tax specialist. Contact the Boulder divorce attorneys at Goff & Goff, LLC today for a free initial consultation.