Financial Planning: Managing Finances Post Divorce

Divorce is a very disturbing and emotionally draining experience for any married couple. A divorce, because of any reason, makes a big emotional dent in a persons life and for many, it is as if they have to start building their lives all over again. If there are children involved, it is even more traumatic and wrenching. Getting a divorce is an unpleasant experience and creates a void, not just in your feelings but in your finances as well. The financial life of a married couple revolves around mutual support and trust. However, a divorce shatters all that and financially, this means bad news for the parties involved. After your divorce, you may find yourself surrounded by relatives and friends who offer incessant advice on your emotional well being. However, what should you do to ensure that your financial health stays intact and secure? Here are a few tips for effective financial management if you are facing or have gone through with a divorce lately:

1. Consider mutual finances:

   Obviously this seems to be very difficult immediately after the divorce, but in the long run, taking the mutual financial interests (for you and your ex-partner) proves to be helpful and ensures better sense of financial responsibility.

2. Never lend ears to unsolicited advice:

   Given the nature of your financial health (considering the alimony, if any and other sources of wealth), you may become the targets of certain individuals who may have some vested interests or may even offer you a bad financial advice. You must refrain from acting on advice of someone whom you dont completely trust and must try and take independent decisions.

3. Close the joint credit accounts:

   This is very important for ensuring that you do not suffer any monetary loss and must be done immediately after filing for a divorce. Doing this will ensure that you do not suffer from any bad credit score and that your independent financial leverage is maintained.

4. Keep track of income and expenditure:

   Though this is a primary step for any kind of financial standing, keeping a track of your accounts (joint as well as separate) is very essential post a divorce. This will also allow you to update your financial records and become more transparent and responsible in your transactions.

5. Get and secure your own health insurance coverage:

   Most married couples invest in joint healthcare, where one person pays the premiums for the entire coverage.Therefore, it is important for you to secure your own health insurance coverage after divorce. Additionally, you can seek professional advice on any other plan options that you may have.

6. Create a budget:

   Create your own separate budget after the divorce and ensure that you change the beneficiaries on any of your finance-related plans or documents (e.g. your pension plans or post retirement plans, if any. Besides, you must try to become more independent in your financial dealings and take time to educate yourself properly about the available financial/investment options.

Remaining prepared financially for any such eventuality is always better and makes you more responsible towards your decisions. Being insured is one sure-shot way of ensuring that your savings and your finances stay secure at all times.

HDFC Life offers numerous insurance plans for your benefit and you can check the details by clicking on the mentioned link: https://www.hdfclife.com/life-insurance-plans