It's often said that a breakup is all about emotions, but a divorce is mostly about money. That may be especially true in the time after all the paperwork has been finalized. With the emotional turmoil and legal disputes mostly in the rear-view mirror, many people who have gone through a divorce in Rhode Island find their financial picture has changed more than they may have realized it would. However, there are some steps Rhode Islanders can take to protect their financial futures after divorce.
First, it is important to create a budget. Establishing a new household as a single individual comes with costs, such as renting an apartment, buying furniture and other household goods that may have gone to the other spouse during property division. Divorcees will have to take a fresh look at their finances, to ensure they are meeting all their financial obligations. Financial planners can help in these endeavors. In addition, emotional spending may be tempting at such times, but this frivolous spending should be avoided.
Second, new divorcees in Rhode Island may want to look at their wills, retirement accounts and life insurance policies. If a person's ex is named as a beneficiary on these documents, this should be changed. Such changes will not take place automatically, even if the divorce decree states a spouse has given up such benefits. Policyholders must be proactive, and take the official steps necessary to change a beneficiary or update their wills.
To a person who is only now considering a divorce, or just beginning the divorce process, all these concerns may seem a long way off. Going through a divorce can bring about a whirlwind of emotions and can unfortunately sometimes cloud one's judgment, particularly when it comes to finances. Often, people just want the whole process to be over as quickly as possible. This can lead to people accepting an unfair settlement.
Experienced attorneys watch out for their clients' best interests and compassionately counsel their clients to make sure their rights are respected. When one is going through a difficult dispute, it's important to have a professional on one's side.
Source: The Huffington Post, "7 Steps To A Better Financial Future After Divorce," Brittany Wong, June 16, 2015