• 12
  • August
    2010

There's no question that it can be difficult to focus on asset protection or other important issues in the immediate aftermath of a divorce. You mind is more than likely focused on adjusting to your new life and recovering from stressful legal proceedings. In fact, the idea of revisiting your will or planning your finances may just seem like more than you can handle.

Nevertheless, it is extremely important that you eventually take certain steps to protect your financial interests and legal interests.

Today's post will briefly examine two post-divorce asset protection strategies ...

Revisit Your Financial Planning

While a divorce may free you from an unhappy marriage, it shouldn't free you from the need to undertake some sort of financial planning. In fact, given your newly single status, you will more than likely want to account for your adjusted means and any other changes.

Typically, post-divorce financial planning should include the following:

• Create a viable budget based on your new income (including spousal support and/or employment income).  It is very important to account for any debts in constructing your budget.

• Establish your own line of credit, as well as your own checking account and savings account. This will put you on the path to establishing your own solid credit rating.

• Consider purchasing disability insurance, life insurance (if applicable) and long-term care insurance. If you have children, this is an especially important consideration.

Revisit Your Legal Documents

In addition to planning for your financial future, you will also more than likely want to re-examine several legal documents in the wake of your divorce, including your will, living will and/or durable power of attorney. Why? You want to ensure that your last wishes are fully honored and that your assets are distributed according to your exact specifications.

The following post is provided for informational purposes only and is not to be construed as legal advice. To learn more, consider speaking with a legal or financial professional.

Related Resources:
  
• Many Financial Hurdles Remain After a Marriage Ends (WVNS-TV)