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Financial
Self-Defense... Page 4
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Ask the important
questions. Will I need additional coverage in case my husband becomes disabled or dies?
Remember. Alimony and child support payments are based on his ability to earn a living.
That alone is enough reason to carry life and disability insurance policies on yourself to
protect you and your kids. Also consider changing beneficiary designations on your life
insurance policies to someone other than your husband. Obtain separate homeowner's,
automobile, and health insurance policies as soon as possible after your divorce.
Consider your needs for health care coverage. If you are not working and covered under you
husband's health care plan at work, you should be able to maintain the same coverage for
up to 36 months (a minimum of 18 months) after a divorce. Your rights are protected under
the Consolidated Omnibus Reconciliation Act (COBRA).
Your insurance premiums will probably be more expensive, but at least you'll be covered.
After your time limit has expired, you'll be responsible for finding your own health
insurance.
9) Draft a New Will. Your husband should be cut out of your will as soon
as possible, especially if divorce is imminent. Rewrite a new will and be sure to change
your beneficiary designations on IRAs, life insurance policies, and pension plans. Make
changes if your husband's name is listed on other documents -- trustee, executor, powers
of attorney, beneficiary of other estate planning documents. Once you're divorced, you
will lose the unlimited marital deduction for your estate after your death. Plan
accordingly.
10) Work. Find a job unless you're already working. The sooner you regain
a sense of independence, the better off you'll be in the long run. Having a regular
paycheck will also improve your financial situation. Let your family and friends know
about your desire to go back to work. Search the Internet. Scan the classifieds. Seek the
help of a job counselor. Network as much as you can. If your skills are outdated or you've
been away from the workforce for a few years, consider going back to school or re-training
for a new career. The costs for education or training can be added to your divorce
settlement. Ask your attorney.
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