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Divorces often creates a need for financial housekeeping

On Behalf of | Mar 27, 2013 | Firm News

Many folks in Texas who get a divorce never would have thought they could end up in that position. Of course, nobody enters a marriage planning to get divorced, but even when things are going roughly, the dreaded D-word still carries a sense of gravitas — and finality.

It also signals a time for new beginnings. For many newly divorced people, it may have been quite a while since there was not a partner to depend on emotionally — not to mention financially. One of the first steps a newly divorced person should take is to examine sources of income and decide on a budget. There will be less wiggle room for extra expenses with only one income instead of two going forward.

There are also some housekeeping duties to undertake. It is a good idea for people to set up individual checking, savings and/or credit card accounts if they do not have them already. Titles on cars and homes should be updated; any joint accounts that might be left open should be closed.

It is likely that most married people have their spouses listed as beneficiaries on retirement accounts and insurance plans, so people may want to change that after a divorce becomes finalized. Additionally, health, dental and vision coverage may no longer be in force for an ex-spouse after divorce. COBRA through your ex-spouse’s employer may be an option if you aren’t readily able to be covered by a plan of your own. Make sure that your children are covered too; it might make more financial sense to have them covered under your ex-spouse’s plan even if you are not.

Source: Fox Business, “Starting Your Financial Life Over After Divorce,” Andrea Murad, March 22, 2013

  • Our firm handles divorce and a wide range of other family law issues for Texas residents. To learn more about our practice, please visit our Dallas divorce page.

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