Divorce is one of the most traumatic events a person can go through. It invokes emotions such as hurt, anger and disappointment that are hard to control, and it can take a long time to recover fully. Everyone knows how frustrating and emotionally difficult divorce can be, but often we overlook the more logistical challenges of separation.
Divorce brings major change to nearly every aspect of your life, including your financial stability and future goals.
The list of responsibilities may seem a bit daunting at first, especially if you were not really involved in the family finances while you were married. But by learning along the way, you will likely find that it is empowering to make your own financial decisions.
Things you should do post-divorce:
1. Draft a new will.
The law gives you a three-month window period after your divorce in which it is assumed that it is your intention to disinherit your ex-spouse. If you should pass away during that time, and you had not amended your will, a court will assume that you were going to. If, however, you pass away after the three-month period and had still not amended your will, all your assets will revert to your ex-spouse.
2. Invest wisely.
When a divorce is granted, a redistribution of assets takes place, where often one spouse will receive a lump sum or several instalments from the other. As the recipient of these funds, it is critical that you look to the future and make sensible plans that will take care of your financial needs.
3. Change your policy beneficiaries.
It is vital that you also amend your beneficiary nominations on all of your life-assurance policies within the three-month window after divorce.
4. Make a budget.
To start rebuilding your life, you need to start with an income and expenses budget to ensure that you have a precise idea of what your new cost of living will be in future, with or without the children.
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Author – Jessica Gooding