Know about these financial matters before divorce

| Mar 26, 2020 | divorce

From the beginning of the separation process to the final dissolution of a marriage and beyond, most couples legally ending their union experience a great deal of stress. Likely, many divorcing Missouri residents feel a loss of control in many areas of life — living situation, financial state and relationship status, among others. Happily, many divorced individuals report having come out the other end better off financially than when they started the divorce process. However, most people would likely benefit from some guidance to help reduce stress while they are getting there. People who are even thinking about divorce are smart to pay attention to the following financial matters.

For one, both parts of a divorcing couple should give some thought to designating powers of attorney in case they are unable to speak for themselves in a financial or health care situation and be sure they arrange the necessary documentation. Secondly, most divorced people would not want their ex-spouse to receive their life insurance proceeds following an unfortunate event. To avoid this outcome, divorcing people are wise to change the beneficiaries on any financial product that includes a transfer upon death: retirement accounts, life insurance policies, bank accounts, etc.

Financial experts also advise divorcing people to review their credit report to ensure they are no longer an authorized user on any of their ex’s credit cards and vice versa. Additionally, divorcing people should review their retirement plan and adjust as necessary. For example, if one spouse receives a portion of the other spouse’s employer sponsored benefits as part of an agreement, he or she may choose to move those funds elsewhere.

Many divorcing individuals may feel as though their lives are spinning out of control as they work through the tumultuous months (or years) of the divorce process. Most people feel a bit better having a grasp on financial matters, and this also increase the chances of financial success post-divorce. Family law attorneys are available to assist Missouri residents wanting to begin the divorce process.