Financial Tips For Individuals Going Through A Divorce

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Going through a divorce can be a difficult time for many - the partners involved, immediate family members, even extended family members. That being said, just knowing the nature of the situation, we also understand how stressful it can be to make important decisions in the middle of it all.

Here at American Investment Planners LLC, we have advisors who have experienced the divorce process first hand, which has allowed us to increase our knowledge about the field and further grasp the challenges that individuals in this situation face. And since the process of going through a divorce can be quite expensive in itself in addition to impacting individual financial situations, we have made it our business to help clients going through this life change in addition to the other financial planning services we offer.

Below, you'll find a few financial tips for individuals who are going through a divorce:

1. Adjust your banking situation so that there are no longer any joint accounts open - same goes for credit cards that may have been shared between both parties. If, however, money is owed on a joint account that cannot be fully payed off at the time of the divorce, speak with your lender to ensure that future charges won't be accepted so that you can just focus on paying off final debts. Additionally, don't forget about brokerage accounts where joint ownership has been granted. Since any joint owner can make a call to have the account liquidated, it's critical that you meet with your financial advisor to review ownership rights on investment accounts - especially for those accounts not held at a bank.
2. Find time to change the beneficiaries on any of your accounts. If you are not sure who you should put in place of your ex-spouse, seek the advice of a trusted financial advisor like American Investment Planners LLC. Since the individuals you list will receive your assets once you pass, it's important to make sure that you are satisfied with those you have designated in both the primary and contingent categories.
3. Check your credit score to see how your financial status has changed, if at all. If there are issues that need to be addressed, make sure to do so immediately so that they do not infringe on your ability to take out new loans or insurance, for example.
4. If children are involved, make sure that all matters related to child support are taken care of in depth and understood by both partners. And don't forget about college tuition! Should loans be taken out to cover the cost, it's important to determine whose name they will be in and how both parents may be contributing. Lastly, you must also figure out if you are entitled to alimony and find out how long it will continue for. 
5. Take a look at your investments and really spend some time going over them. If your spouse was primarily in charge of investments, you may need to adjust some of the decisions previously made to find new investments that are a better fit for your latest financial situation. Of course if you are unsure about current investments and if they should be changed, you can always contact American Investment Planners LLC for help.

Last but not least, it is extremely important to set a new budget for yourself and create a new plan to help you save for the future. By being aware of how your finances have or will change, you can develop a new strategy for feeling financially secure for years down the line.

Here at American Investment Planners LLC, we are well aware of the challenges that come with a divorce, which is why we have also dedicated part of our services to helping individuals with these needs. For more information about how we can help, please give us a call at (516) 932-5130.