Divorce - Get a Fair Deal

Money Smart WomenChapter 9 Divorce: Get a Fair Deal

Janet Bodnar

Divorce: Get a Fair Deal

• Make no mistake about it --- Divorce is a financial disaster

• Just like marriage – divorce is a legally binding agreement

Divorce: Get a Fair Deal

• Know the numbers – 50 % of first marriages end in divorce

• Second marriages don’t have a better track record – more than 50% of second marriages end in divorce

• Know your state’s laws on divorce

Divorce: Get a Fair Deal

• What do you do?• Big Four• Check your credit• Plan, plan, plan• Build and utilize your team to help you!

(Attorneys, mediators, counselors, accountants, financial advisors)

Divorce: Get a Fair Deal

• Debt: Get rid of joint debt• Contact debtors and tell them of your new

status• Protect your credit rating

Divorce: Get a Fair Deal

• Determine your assets so that you know how to divide assets

• Plan for a lifetime – not the immediate situation or future

• Don’t count on alimony• Child support – know what to expect and

determine needs for life of child

Divorce: Get a Fair Deal

• Should you keep the house – if you do – you more than likely keep the mortgage

• Health insurance?• Retirement plans?• Social security?• Life insurance?• Other benefits/assets?

Divorce: Get a Fair Deal

• Tap into assets and be sure “how” you receive these assets. Is it better to “cash out” or wait until you receive assets?

• Social Security – remember the rules…• 10 year rule applies to Social Security and

pensions• Remarriage and the ramifications…

Divorce: Get a Fair Deal

• Revisit your estate plans – will, durable power of attorney, living will, guardianship for children, trusts, how you titled property, etc.

• Beneficiary forms – update all beneficiary forms

Divorce: Get a Fair Deal

• Your children -- if they are old enough, inform them of new financial status

• Child support – be thorough and detailed• Note: payment on child support is not

dependable• Alimony – don’t count on it

Divorce: Get a Fair Deal

• Helpful sources• Wife.org• http://www.kidsinthemiddle.org/