Suddenly Single October 9, 2012My MoneyOff

Being divorced or widowed is never easy.

Along with the emotional difficulty, you’ve got to rethink your money.

“It’s a hard mindset to change, but you go from thinking about ‘we’ to ‘me,’” says Kristen Fricks-Roman, SVP and financial advisor at Morgan Stanley Wealth Management.

“Now, it’s what do I want my future to look like?”

A good start is with bills, especially those in your husband’s name. It’s tough to call up your telephone provider or electricity company to explain why a bill should change to only be in your name. Especially when the wound is raw.

She recommends having a “Buddy Day” where friends help make the calls.

Knowing what money is coming in and what’s going out is key. Deal with debt. “You are now living for yourself and you have to create your own purpose,” says Fricks-Roman. “And usually what drags you down in creating joy, is debt.”

Setting budgets and savings goals helps secure the future you want.

Next, paperwork. Keeping important documents up-to-date will save you trouble later on. Make sure the beneficiaries on your IRA and insurance are current. Update your will, durable power of attorney and healthcare proxy.

Make sure you have long-term health insurance. “You don’t want to leave a tangled mess for your family and friends,” she says.

Once you’ve figured out the financial planning, you have time to recover emotionally and step forward.

Bonus PINK Link: Read 11 ways to keep legal fees down during a divorce.

Suddenly single?

By Mary Welch

“A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.”
Suze Orman

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