Periods of transition in life can be challenging even in the best of situations. When going through a divorce, one of the biggest challenges faced by Alabama divorcees often concerns money. For women, in particular, preserving wealth and a sense of financial stability is key to a successful divorce.
Identify cash flow and assets
Thinking about financial security can be overwhelming for women who might not have had active roles in marital finances prior to filing for divorce. A good place to start is by understanding that wealth is about much more than just what is in the bank. Instead, it consists of things like assets and cash flow as well, and can include:
- Retirement savings
- Real estate
One important thing to consider during divorce is whether one is receiving a lump sum alimony or settlement. If so, creating a long-term plan that considers potential other sources of income, budget needs and one’s lifestyle is essential. Otherwise, that money can quickly disappear.
Insurance needs are another area one should be sure to revisit during a divorce. While this might not be at the top of the list when it comes to financial concerns, securing new insurance coverage can sometimes be a costly endeavor, and some people may need time to shop around for appropriate coverage that does not break the bank. Failing to secure coverage can also wreak any plans for future wealth when unexpected medical bills begin to roll in.
A divorce does not have to derail one’s long-term financial plans. However, preserving a sense of security and wealth does involve paying careful attention to things like property division, alimony and more. Those who are eager to learn more about money matters during divorce can also take the time to learn more about Alabama family law.