Financial Factors to Consider When Going Through a Divorce
Divorce is a significant life event that can profoundly impact all aspects your life, especially your finances. Divorce can have significant financial consequences and the more you know, the better you can prepare for your life after divorce. This article will explore financial considerations during a divorce.
Banking
When going through a divorce, it’s essential to establish financial independence. You should open a separate checking account and savings account to take control of your personal finances, under the guidance of an attorney. This step not only helps in managing your money more effectively but also in setting a foundation for your new financial life. Online banking can be particularly useful for monitoring spending, setting budgets and ensuring that you are in control of your finances.
Housing
One of the most significant challenges during a divorce is deciding what to do with the marital home. If selling is the chosen path, both spouses need to understand the market and prepare for the process. If there is a spouse who wants to stay in the home, they might need to adjust their lifestyle to accommodate the new financial burden, or reconsider potentially downsizing or relocating to a more affordable place.
Personal Vehicles
Ensure that vehicles are appropriately divided and that you have suitable auto insurance coverage. If necessary, exploring options for car loans can help meet your transportation needs.
Beneficiaries
Updating beneficiaries on any financial account and adjusting your estate plan is an often overlooked but vital step in the divorce process. The beneficiary is the person who is designated to inherit your financial assets (Savings Account, Money Market Account, Retirement Assets, Life Insurance) upon death, and updating your designee directs those funds to someone other than your ex-spouse.
KEMBA Can Help You Land on Your Feet
KEMBA Financial Credit Union is here to support individuals looking for a fresh start after a divorce or any major life change. Whether you need help refinancing your home, securing a new car loan or simply want advice on managing your finances, KEMBA offers the tools and resources to assist you. We encourage you to visit our website or stop by a local KEMBA branch to discover how we can help you navigate your new financial landscape. You can also contact our dedicated member service team at 614.235.2395 and select Option 4 to get started.