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What should you know about your finances post-divorce?

On Behalf of | Jul 16, 2024 | Divorce

Protecting your and your children’s futures is crucial during and after a divorce. Ensuring this is especially daunting for those undergoing the process later in life. Knowing who you can turn to and who you should contact makes tracking your finances less complicated.

A settlement agreement and a divorce decree outline financial responsibilities and claims when finalizing a divorce. However, they may not cover other factors affecting your financial status.

You can check the list below to see who you should inform about your divorce to secure your finances.

Skilled legal and financial advisors

Need guidance in identifying documents that tie your finances to your ex-spouse? Talk to your family law attorney and financial advisor about:

  • Revising transfer-on-death (TOD) accounts and policies
  • Crafting a new will
  • Updating beneficiaries for retirement accounts and your estate plan

They can also help ensure that your spouse complies with agreements on property division, alimony and child support.

Banks and other creditors

After a divorce, you must update your personal details. This is necessary to avoid mix-ups in bank and credit accounts. You can approach your bank and other creditors to:

  • Remove your name from debts or loans that aren’t your responsibility
  • Close joint savings, credit and investment accounts
  • Check your credit report for any errors or changes you may need to dispute
  • Open a new account or credit card in your name

You can also ask about keeping a joint account if you co-own a business with your ex-spouse.

Government agencies

Make it a priority to update your name, address and beneficiaries on government documents such as:

  • Social Security card
  • Driver’s license
  • Passport
  • Retirement accounts

This protects your identity and prevents inconveniences arising from mismatched information.

Insurance providers

Make it clear to your insurance providers who should benefit from these policies:

  • Auto insurance
  • Life insurance
  • Health insurance

You should also amend your estate plan, including health care directives and powers of attorney.

Housing authorities and homeowner association

Former spouses typically live apart and split properties. Notify housing authorities and your homeowner association if you need to update:

  • Real property or real estate titles
  • Lease or mortgage
  • Homeowner association dues billing

Amicable or not, a divorce changes factors affecting your financial well-being. The process might exhaust you. It might make you reluctant to start organizing your finances. But the sooner you secure your newfound financial freedom, the sooner you can reap its benefits.