In 2009, 44% of the 2,077,000 marriages ended in divorce. And while that number is expected to decrease by 2.5%, for 2011 it still represents a large part of the country splitting lives. You are not alone, but that doesn’t make it easier.
There are generally two camps when it comes to divorce: one side that is always willing to take the simplest flight from struggle, willing to throw their hands on the table and say “Take it!” The other side is led in the opposite direction by hurt – down the road of greed and spite.
Being on the end that’s screaming that they want it all (!!!) can be every bit as devastating as getting nothing from your settlement.
But, unfortunately, neglecting your finances either during or after divorce can be as a devastating to your life as the divorce itself. Shopping to escape the pain of your crumbling relationship leads many refugees from domestic civil wars running up plenty of credit simply because they’re looking for a reprieve.
There are many ways to take control, as long as you’re willing to be smart and sacrifice. The road to divorce is never pleasant, and the aftermath rarely easy.
Getting in charge of your finances will put you in charge of your life.
Unpleasant necessities such as wills, retirement funds and insurances must all be changed or altered to reflect your most current needs.
Yet, wills and life insurances can be monsters of another breed.
Wills
Contact your lawyer to generate a new will once all properties have been sorted and effectively divided, making sure you know how your current belongings will be distributed so that your family, friends and loved ones won’t need to worry about loose ends while grieving your loss.
Life Insurances
Life insurance policies are critical elements to resolve at any time, but especially during a divorce. This sample property settlement comes from AmericanBar.org stating how the life insurance could be handled:
“The husband shall maintain life insurance for the wife having an aggregate death benefit of $250,000. Said obligation shall be terminated if the husband’s obligation to pay alimony is modified/terminated. The husband shall maintain life insurance having an aggregate death benefit of $250,000 for the benefit of the emancipated children. Said benefit shall be reduced by $75,000 upon the emancipation of the first child and again upon the emancipation of the second child. The obligation to maintain any life insurance for the children shall terminate upon the emancipation of all Three [3] children.”
Keeping this example in mind, there are other ways to approach the life insurance part of your divorce. The best option is to consult your lawyer on your life insurance requirements and options.
In the meantime, tending to your health insurance needs is something you can, and should, handle on your own.
Health Insurance
Life insurance is a near essential these days and, likewise, living without even basic health insurance that will help cover your costs when you need it most is dangerous, if not downright negligent.
COBRA is an insurance you can continue to carry if you’ve been on your spouse’s group health insurance plan. It’s a temporary solution, which allows you time to find your own policy.
Health insurance is the first thing often forgotten when financial struggles hit. This is often, if not always a mistake. The harsh reality is that if you need medical coverage and don’t have it, your financial world could crumble to ruin.
According to a study done by The American Journal of Medicine in 2009, 62% of all bankruptcies are medically related. Losing everything you own, just to save a few dollars each month isn’t an intelligent option.
Find an affordable policy and protect the assets you do have.
Health insurance comparison sites can help you get a hold of a policy that is effective and affordable.
A low monthly premium means you pay less each month, but it also could mean that you’re paying just to carry around a card that has little effect on your medical coverage. Check out different policy types and see which ones offer the most coverage for the money.
While health insurance seems like something you can do without for the time being, especially when you’re running low on funds, it isn’t something you want to neglect. Not only are medical bills higher (almost double) for those without insurance, the risk of losing your home and everything you own will cost you far more than what you’ll spend on your relatively reasonable monthly premiums.
Finding an Affordable Policy
Locating a policy you can afford, that will offer excellent coverage for all of your needs can be daunting. But sites like HealthCompare.com make it as easy as entering a zip code.
Finances to Consider
When considering a health insurance option after divorce, it’s important to consider all of your possible out of pocket costs. Premiums are the obvious culprit, since they are paid each month.
However, there are also co pays, co insurance, and deductibles to consider.
Taking all of these factors into consideration when comparing policy types can help you find a policy that’s effective, while still being affordable enough for you to consider protecting yourself and your assets.
In the end, divorce is never easy, and it can be a horrible phase of your life. But you’re never alone. Divorce affects millions of couples each year. The best way to financially survive the pain is by protecting yourself; educating yourself first, then acting on what you learn.
Separating your finances and assets, rather than simply surrendering, can help you get started on your own, and stepping forward with financial intelligence.
Protecting your health by taking care of it. Covering yourself with health insurance is intelligent, and can keep you protected from losing all you own to medical debt if you’re left uncovered.