Yusra3
Banned
Finalizing a divorce brings enormous relief but also many financial unknowns. During this transition, taking key actions around money can help stabilize your new situation and set you up for future security. Consider these steps:
Update Beneficiaries
One of the most important post-divorce financial moves is updating beneficiaries on retirement accounts, insurance policies and other assets to remove your ex-spouse if applicable and ensure funds are distributed as you intend.
Open New Accounts
Splitting finances requires opening separate accounts in your name only including checking, savings, credit cards, investment accounts and more. Make sure monthly income and bills are routed properly. Close joint accounts and credit cards.
Examine Debts
Look at all debts accrued during marriage and determine in the divorce decree who is responsible for repayment. Refinance jointly held debts like the mortgage or auto loan in one spouse's name. Understand implications.
Review Budget Needs
Project your monthly expenses now that households are separate. Budget reflects your changed financial reality. Account for loss of economies of scale. Model different scenarios to find the right balance.
Revisit Savings Goals
With one income, you may need to reassess timelines for goals like retirement, college, home purchase etc. Crunch the new numbers to shift priorities if needed. Additional savings may be required.
Check Credit Reports
Order credit reports to check for any inaccuracies like joint accounts not closed. Dispute errors. Also consider freezing credit when separating to avoid identity theft.
Consult a Professional
Enlist help from a fee-only certified financial planner to walk through changes needed for budgeting, debt, taxes, investments and insurance to set you on the strongest road ahead.
While divorce brings many emotional challenges, taking proactive financial steps helps alleviate money stressors and empower a fresh start. Be strategic, patient and seek knowledge - your new financial path will take shape.
Update Beneficiaries
One of the most important post-divorce financial moves is updating beneficiaries on retirement accounts, insurance policies and other assets to remove your ex-spouse if applicable and ensure funds are distributed as you intend.
Open New Accounts
Splitting finances requires opening separate accounts in your name only including checking, savings, credit cards, investment accounts and more. Make sure monthly income and bills are routed properly. Close joint accounts and credit cards.
Examine Debts
Look at all debts accrued during marriage and determine in the divorce decree who is responsible for repayment. Refinance jointly held debts like the mortgage or auto loan in one spouse's name. Understand implications.
Review Budget Needs
Project your monthly expenses now that households are separate. Budget reflects your changed financial reality. Account for loss of economies of scale. Model different scenarios to find the right balance.
Revisit Savings Goals
With one income, you may need to reassess timelines for goals like retirement, college, home purchase etc. Crunch the new numbers to shift priorities if needed. Additional savings may be required.
Check Credit Reports
Order credit reports to check for any inaccuracies like joint accounts not closed. Dispute errors. Also consider freezing credit when separating to avoid identity theft.
Consult a Professional
Enlist help from a fee-only certified financial planner to walk through changes needed for budgeting, debt, taxes, investments and insurance to set you on the strongest road ahead.
While divorce brings many emotional challenges, taking proactive financial steps helps alleviate money stressors and empower a fresh start. Be strategic, patient and seek knowledge - your new financial path will take shape.