A divorce can be an incredibly emotional process to go through. It is important to process this change in your own way as well as make the necessary changes to your life in a time frame that is appropriate for you. While there are certainly a lot of steps you are taking already, I wanted to compile a few quick and easy financial steps you can act on today.
1. Update your will:
Every divorce is different with each having its own reasons for separation. That being said, you should update your will to represent your wishes and desires after the divorce. You may find that you would like to keep your will the same or to make a few changes. As a general rule of thumb we recommend clients review their wills every 3 to 5 years or after a major life event. This is so that you can make sure everything is up to date.
2. Change your Beneficiaries:
Updating your beneficiaries is an important step here. If you currently have a 401(k) or an IRA this is where you should make some updates. God forbid something were to happen to you, if your beneficiaries are set to go to your ex, even after your divorce, he/she will inherit your investments. The key here is to make sure your beneficiaries are set for your investments to go to who you want them to go to. This is an easy change for my firm to help update for you should you ever need some help.
3. Review your life insurance policies:
Make sure your beneficiaries are up to date. Do you have the correct amount of coverage, is it too high or too low? Is it the correct type of coverage, term or whole? These are some of the questions you should be asking yourself. Reviewing your life insurance policies is important in determining who you want to receive the money. You can change these from your previous spouse to your children or even a charity of your choice.
4. Social Security Benefits:
Did you know you could be entitled to a portion of your ex’s social security benefits if you were married longer than 10 years? You may be entitled to this even if you get remarried. This is subject to your personal social security benefits.
5. Create a New Financial Plan
Reassessing your new financial goals can help you get back on track for your future. Reviewing where you are today to plan for where you want to be in the future.
At IntelliVest we will review your current budget, beneficiaries, life insurance, as well as your social security benefits to make sure they are all working for you. Together we can help you get on track to achieve your financial goals.