Achieving financial stability after a military divorce

For many Florida military spouses, fears of financial hardship make it difficult to move forward with a divorce. This is true even when the marriage has passed the point of no return. It can be intimidating to consider starting over again on one’s own, especially for parents who will need to provide for the needs of their children after the marriage ends. It is important to understand that individuals have a great deal of control over how their financial life is shaped after a military divorce, so that undue anxiety does not influence their decision-making during this important time.

Once a divorce has been completed, former military spouses should take the time to make a full review of their current credit standing. Obtain all three credit reports, and address and inaccuracies that may be included. This is also the time to make sure that all shared lines of credits have been closed, and to open one or two new accounts in one’s own name. Rebuilding or bolstering one’s credit standing is essential in case an individual needs access to credit in the years to come.

Another important factor involves completing a thorough evaluation of one’s retirement planning. Many married couples make retirement investment plans based on the belief that they will enter retirement together. The retirement planning needs of a single person are far different from that of a married couple. Therefore, divorce brings about the need to sit down with a financial planner and make sure that one’s current retirement savings strategy is still appropriate for their ultimate needs and goals.

By taking these and other steps to strengthen one’s financial position, Florida spouses can move beyond a military divorce and into a new phase of life. It is important to understand that while divorce can bring negative financial consequences, it is always possible to rebound from these challenges and emerge in a strong financial position. Part of that process also involves the creation and implementation of a strong negotiation strategy within the divorce process.

Source: Daily Finance, “5 Tasks to Help You Start to Rebound Financially Post-Divorce”, Hank Coleman, April 29, 2014