Get On Solid Financial Footing After Divorce
Divorce is a life event with significant emotional and financial consequences. In the aftermath of dissolving a marriage, it can be difficult to keep in mind the dollars-and-cents details. Here’s a post-divorce checklist to make sure your financial bases are covered.
Update beneficiaries on accounts.
That includes retirement, insurance, trust, investment and savings accounts. You can skip this step only if you plan for your former spouse to get your 401(k) if something happens to you.
Update titles and ownership records.
This includes records on real estate, vehicles, boats, retirement plans, college funds, stocks, bonds, mutual funds, certificates of deposit, savings accounts, artwork, collectibles, loans to others and all other assets — and don’t forget your frequent flier programs.
Close joint accounts.
Include credit cards and checking accounts held with the ex-spouse. Instruct creditors to suspend credit accounts that have a balance to block any future charges.
Open new checking, saving and investment accounts in your name.
If you need to establish credit, consider applying for a credit card now.
Update your Social Security card.
Especially if you changed your name. You cannot do this online, but you can find instructions at the Social Security website, SSA.gov.
Project your tax liability.
Get copies of the last five years of returns if you don’t already have them. Evaluate impact of changing filing status from, for instance, married filing jointly to head of household or single.
Create a new estate plan.
Write a new will to make sure your bequests go to the right place.
Update insurance coverage.
Auto, home and umbrella liability coverage should all be reviewed. Make sure you’re not paying to protect collectibles, jewelry or other assets your ex got in the divorce.
Update your liabilities.
Make sure to reflect post-divorce division of debts. Include mortgages, credit cards and other loans.
Check your credit report.
See if your former spouse has incurred debts in your name since the split. Monitor your credit report and credit score.
Create a budget.
Be sure to factor in paying or receiving child support, spousal support and alimony if required by your divorce decree. Make your new budget match your new goals as well as your new income and expenses.
Check safety deposit boxes.
Empty and close jointly owned bank safe deposit boxes and get your own to hold important papers.
Remove your data from shared devices.
Before relinquishing formerly shared PCs, tablets, phones and other devices, delete any personal files.
Consider consulting a financial planner.
Budgeting and investing can benefit from professional assistance and even more so following a divorce.