Even if the divorce process is a stressful, overwhelming event, the divorcing couple often focuses on the possibility of an exciting, independent future awaiting them at the finish line. While navigating negotiations centering on property division, debt responsibility, support and a parenting plan, the divorcing couple might lose track of numerous other financial details they must address following the divorce.
While every divorce follows a unique path, there are numerous common characteristics. For example, most divorced couples will evaluate and revise several financial documents after the legal process has concluded, including:
- Estate planning documents: As soon as possible, it is wise for the exes to revise their estate plans. From changing beneficiaries to adjusting powers of attorney, the divorce has likely disrupted many plans for the future. Leaving the plan as-is can ultimately cause heated arguments and emotional disagreements further down the line.
- Insurance policies: From health insurance to vehicle policies, it is crucial that the divorced couple quickly adjust their various insurance plans to reflect current home ownership, rental insurance, medical coverage and disability benefits. Additionally, it is wise to change the beneficiary of your life insurance policy unless the divorce order included prohibitive language.
- Shared accounts: While many of these will be corrected during the property division phase of the divorce, it is crucial that you carefully examine any shared or joint accounts. These can include personal loans, joint savings accounts, shared credit cards and even a family cell phone plan.
While the divorce process can lead to an exciting new future, it is wise to be mindful of the numerous administration tasks that fall on your shoulders after the end of the marriage. It might be beneficial to begin taking inventory as soon as divorce becomes a reality so the overwhelming process itself does not obscure these important revisions.