Getting a divorce can affect several aspects of an individual’s life, including their finances. However, there are certain steps that future exes in California can take to protect themselves financially and lessen the financial impact of a divorce.
A recent divorcee will likely have to deal with a drop in income as well as an increase in expenses. Creating a budget that takes into account one’s projected monthly expenses for insurance, utilities, food and housing can help. It is also important that an ex is fully aware of all of the debt that they and their former spouse may owe. This can be done by obtaining copies of credit reports. Both parties of a marriage may be pursued for balances owed on any joint accounts, even if one spouse had no hand in incurring the debt.
It will also be necessary to take an objective look at one’s overall financial situation. Insurance needs, retirement savings, money intended for education and cash flow will all have to be reevaluated in order for a new financial strategy to be adopted.
People who get a divorce should also take a close looking at their existing estate plans and revise their wills as well as update all of their beneficiary designations on annuities, life insurance policies and retirement accounts. The names of the individuals who have been granted financial and health care powers of attorney may also have to be updated.
An attorney may help a client prepare for a divorce. Legal counsel could advise them of which actions may be necessary to obtain favorable divorce settlement terms regarding child custody and support, spousal support, parenting time, visitation plans, asset division, parental relocation and more.