Adjusting To Life Financially After A Divorce

Presented By Frederick J. Dawson

There’s no doubt about it – going through a divorce can be an emotionally trying time. In addition to the emotional impact a divorce can have, it’s important to be aware of how your financial position will be impacted.

Assess your current financial situation

Following a divorce, you’ll need to get a handle on your finances and assess your current financial situation, taking into account the likely loss of your former spouse’s income.

Establish a budget

A good place to start is to establish a budget that reflects your current monthly income and expenses. Include your regular salary and wages, and any monthly alimony and/or child support you may receive.

Protect/establish credit

Consider taking steps to try to protect your credit record and/or establish credit in your own name. You’re entitled to a free copy of your credit report once a year from each of the three major credit reporting agencies. You can go to www.annualcreditreport.com for more information.

Review your insurance needs

Typically, insurance coverage for one or both spouses is negotiated as part of a divorce settlement.Evaluate your health, disability and life insurance coverage. Finally, make sure that your property insurance coverage is updated.

Change your beneficiary designations

After a divorce, you’ll likely want to change the beneficiary designations on any life insurance policies, retirement accounts, and bank or credit union accounts. Keep in mind that a divorce settlement may require you to keep a former spouse as a beneficiary on a policy.

This is also a good time to review your will. Make sure that your former spouse isn’t still named as a personal representative, successor trustee, beneficiary, or holder of a power of attorney in any of your estate planning documents.

Consider tax implications You’ll also need to consider the tax implications of your divorce. If you are receiving alimony, it will be considered taxable income to you. Child support, on the other hand, will not be considered taxable income.

Consult a financial professional Although it can certainly be done on your own, you may want to consider consulting a financialprofessional to assist you in adjusting to your new financial life.

*Some Content Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2017

* Any opinions are those of Fred Dawson and not necessarily those of RJFS or Raymond James.

* Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Bio

Fred Dawson, ChFC (Chartered Financial Consultant), CLU (Chartered Life Underwriter) has over 40 years of comprehensive wealth management experience. He is the President of Dawson Wealth Management and a founding principal partner of the organization. Successful women are prominent among Fred’s diverse client base of professionals, retirees, professional musicians and business owners.

Frederick J. Dawson, ChFC®, CLU®
Wealth Manager
Dawson Wealth Management LLC
E.A. Delle Donne Corporate Center
1013 Centre Road – Suite 228, Wilmington, DE 19805
302-757-8000
[email protected]    www.dawsonwealth.com

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