What you need to know financially after divorce

Are you nearing the end of a divorce process or is has your divorce recently been finalized?  There are many next steps to consider from a financial perspective, which are often overlooked.

  1. Interview and retain the services of a financial planner. We recommend finding a CERTIFIED FINANCIAL PLANNER™ (CFP®) practitioner in your area via www.napfa.org (National Association of Personal Financial Advisors) or www.plannersearch.org (Financial Planning Association).  Ask your financial planner for referrals for a tax preparer and estate planning attorney.
  2. Review your final documents with your financial planner to make sure everything which needs to be completed (division of accounts, transfers of titles, transfers of accounts, etc.), is in process.
  3. Make sure to address your health insurance coverage immediately. Are you retaining your current employer provided coverage or were you covered by a spouse’s plan?  If the latter, make sure you apply for COBRA benefits or a new policy in a timely manner to avoid a lapse in coverage.
  4. Update your beneficiary designations on all life insurance policies and retirement plan accounts. Did you add a transfer on death (TOD) or payable on death (POD) beneficiary designation to any non-retirement accounts?  If so, don’t forget to update these beneficiary designations as well.
  5. Meet with an estate planning attorney to draft new power of attorney documents and medical directives. You will likely need new, or amendments to, existing wills and trusts.
  6. Consider changes to property and casualty insurance policies. You may need new policies or changes to your current policies such as homeowners insurance, renters insurance, automobile, umbrella, etc.
  7. Review and update your budget.
  8. Review your tax withholding allowances if you earn income.

After the dust has settled, it will be critical to establish short and long-term financial stability.

Visit http://www.b-r-r.com/specialized-services/divorce-advisors/ to learn how Budros, Ruhlin & Roe’s Certified Divorce Financial Analyst™ (CDFA™) and CERTIFIED FINANCIAL PLANNER™ (CFP®) practitioners can help you after your divorce is final and thereafter.

Amy Kelly, CFP®, CDFA™