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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Review and update your budget.
- 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 https://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™