Wednesday, September 3, 2014
It can often be difficult adjusting to life after divorce both emotionally and financially. Here are six financial steps for the newly single:
- Finalize Finances. Make sure that the terms of your divorce settlement are actually executed, including changing the way financial accounts are titled, transferring divided assets into new accounts, executing any necessary quitclaim deeds, etc.
- Disinherit Your Ex. Prepare a new will, trust, medical directives, and power of attorney. Select new beneficiaries on all retirement accounts and insurance policies.
- Check Credit Reports. It is important you establish a list of liabilities that need to have your name of your ex’s name removed from them.
- Don’t Make Irreversible Decisions. Think strategically rather than emotionally. Undoing a rash decision can cost you a lot of money down the road.
- Think Strategically. Although you may need to purchase a new car or house, be strategic about it. If you need cash, do not liquidate your retirement accounts. A better option may be to open a line of credit.
- Have a Team in Place. Surround yourself with a CPA, trust attorney, and financial adviser who all share your values and possess a strong desire to work with you to preserve your income, protect your assets, and build your net worth.
See Steph Wagner, Newly Single? Here Are 6 Financial Steps Just For You, Philly.com, Sept. 2, 2014.