A divorce changes virtually everything in the lives of the parties involved. Finances are certainly part of those changes, regardless of the length of the marriage. It is important for both parties in a Pennsylvania divorce to understand those changes and prepare themselves in order to financially survive a divorce and to ensure fairness as the proceedings move forward.
One important step to take is to divide accounts and assets. One party’s credit score can take a hit if assets or accounts are in both names and the other party does not pay on time or at all. Mortgages and car loans should be settled. Refinancing can be the key to protecting finances or selling the property if refinancing is not possible.
For a couple, it is common to have a spouse listed as a beneficiary on retirement accounts and insurance policies. Updating beneficiary designations should be a priority. Also, important estate planning documents, such as a will and power of attorney, should be updated as well to ensure current wishes are upheld.
It can be easy to get bogged down in the emotional toll and changes a divorce may pose. Acting to protect finances now and in the future is not something that can be overlooked or put on the back burner. Anyone in Pennsylvania who is in the midst of a divorce may benefit from making a list of financial issues, accounts and relevant assets in order to ensure that each aspect of the financial impact of a divorce can be explored properly in settlement negotiations and/or before the court.
Source: Forbes, “Divorcing? 6 Ways To Keep Your Financial Footing“, July 29, 2015