After Divorce Checklist: 10 Tips to Tie Up Financial Loose Ends
If you are recently divorced, it's normal to be worn out by the process, and it's common to leave some loose ends. However, there can be unanticipated financial repercussions if you're not careful.
After Divorce Checklist for Finances
Here is a post-divorce financial checklist with 10 tips to help you get back on track and secure your financial future:
- Review your final separation agreement: When working with clients on post-divorce transition assistance, we typically start with a thorough review of the final separation agreement. Make a checklist of specific items that need to be handled (e.g., assets that need to be retitled) and list any deadlines included in your agreement and the party responsible for taking care of them.
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Close joint accounts: Close any joint bank accounts, credit cards, and other financial accounts with your ex-spouse.
Assess your credit reports: Obtain copies of your credit reports and check for any errors or inaccuracies.
Related post: How to Keep Your Divorce from Destroying Your Credit
- Create an updated budget: Create a new budget that reflects your new expenses and income. For example, if you are paying or receiving child or spousal support payments, don't forget to include the timing of those.
Related post: 5 Tips to Improve Your Post-Divorce Budget
- Update your W-4: Your tax filing status will likely change due to your divorce, so if you haven't done so already, update your W-4 to reflect your change in marital status.
- Update your insurance: Depending on the nature of your situation, this could include several changes. It could be removing your ex from your health insurance or car insurance. It could mean signing up for COBRA, finding another health insurance policy, and/or getting your own car insurance.
Related post: What You Need to Know about Health Insurance and Divorce
- Update your beneficiaries: Review and update the beneficiaries on your insurance policies, retirement accounts, and other financial accounts.
Rebuild your emergency fund: It's common for people to run down their savings through the divorce process. However, an emergency fund is even more important after a divorce, so start rebuilding it as soon as possible.
- Contact your financial planner: It's important that your financial planner knows of any significant life changes that could impact their recommendations. This is an excellent time to sit down with them and update your overall plan, including ensuring that your investment strategy reflects your personal objectives and not your ex's.
Related post: Expert Money Management Tips for Recently Divorced Women
- Review and update your estate plan: Update your will, power of attorney, and other legal documents to reflect your new marital status.
Remember, it's important to take the time to focus on your financial well-being after a divorce. By following this after-divorce checklist, you can take control of your finances to secure your financial future.
Here’s how we can help you...
We get that divorce can feel really hard and leave you with a lot of questions about how to handle your finances. After all, this is the reason Leah Hadley founded Great Lakes Divorce Financial Solutions in the first place.
After her divorce, she found herself stressed and overwhelmed about how to navigate life on her own with three kids and a new financial situation.
Helping families overcome this challenge is why we do what we do.
Whether you’ve never had to manage money before, or you’re a master at investing, we are here to support you as your financial expert before, during, and after your divorce. You can learn more about our services HERE.
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