SOMA Living April 2025

FINANCIAL FOCUS Going through a divorce poses emotional challenges and can disrupt your life, but it doesn’t have to be financially devastating. You can take proactive steps to protect yourself. Cover divorce costs: Divorce can be expensive. You may need to use your income and savings or explore borrowing from your retirement plan if allowed. Build a budget: Establish a temporary budget. Your attorney can advise on the duration of your separation in contested cases. Open separate accounts: Consult your attorney to start separate bank and brokerage accounts while minimizing impact on your spouse. Understand retirement benefits: Know the value of your 401(k), IRAs, and pensions. You might negotiate retirement benefit splits through a qualified domestic relations order (QDRO). AFTER THE DIVORCE FINALIZES: Complete financial separation: Close joint accounts, change financial access, remove your name from bills, and finish asset transfers. Create a new budget: Develop a long-term budget including any support received. Adjust spending based on the divorce agreement for expenses and responsibilities. Review protection plans: Update insurance policies. For health insurance, consider COBRA or explore new plans. Update estate plans: Work with professionals to revise estate documents. Check and update beneficiary designations on accounts. Consult a tax professional: Address tax filing status changes, dependents, and tax implications of asset allocations. Taking these steps can help secure your financial position and ease the transition into the next phase of life. Here are some strategies to consider: BEFORE THE DIVORCE FINALIZES:

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