If you’re in the early stages of separation and heading towards divorce, you’re probably experiencing anger, betrayal, loss, shock, numbness, confusion, panic –or a combination of them all –and it may seem like you’re on an emotional rollercoaster, feeling “up” one minute and “down” the next.
Over time though, these emotions will begin to stabilize, as you set your sights firmly on a bright, new future as a single person. Clearly, your life will be different. But, adapting to –and even embracing –these changes will help ensure your success.
What can you do to stay on the best path forward? Here are a few key steps to get you started towards financial stability post-divorce. Once your divorce settlement agreement is finalized, you will need to:
Update accounts.
If you changed your name as a result of the divorce, you’ll need to get a new Social Security Card, driver’s license, passport and credit cards. You’ll also need to notify your bank, utilities, insurance companies, credit card companies, the motor vehicle department, your children’s school(s), etc. about any change of name and/or address. The titles on all assets, such as cars and houses, will have to be modified and recorded with mortgage companies . . . and it’s likely you’ll want to update beneficiaries on your life insurance, 401k, pensions and IRA accounts, as well.
Develop a comprehensive financial plan.
Build your credit. Good credit forms the foundation of your financial portfolio and will help you secure loans in your name in the future. Seek help from an experienced financial advisor. Even more specifically, look for a financial advisor who is trained and experienced in working with post-divorce persons.
Remember: The financial needs of a divorced person are very different from those of a married couple and you must have an advisor who completely understands those differences and knows how to properly manage your money and invest on your behalf.
Obtain a copy of your certified divorce decree.
Make extra copies, and store them in a secure location.
Close any joint credit accounts.
Remove your spouse’s name and/or change your name/address on all remaining accounts, including:
Bank, brokerage and investment accounts
Credit cards
Driver’s license, automobile title, registration and insurance policies
Employer’s records
IRS records
Life, health, homeowner’s and disability insurance policies
Post office (Remember to have your mail forwarded, too.)
Professional licenses
Social security card
Title to real property
Utility bills
Open a new credit card account and request a copy of your credit report.
Disinherit your spouse
Write and execute a new will, trusts, medical directives and/or living wills and powers of attorney. Don’t forget to change the beneficiaries on your life insurance, 401k, pension and IRA accounts.
Establish a system to keep track of all child support made/received, alimony payments made/received, medical expenses, etc.
Enjoy your new life. Once you complete the previous steps, you will be well on your way to establishing a secure financial foundation for your future.
For more information and to schedule your consultation, please call The Law Offices of Steven B. Chroman, P.C., at 661-255-1800 or visit us at www.chromanlaw.com. Mr. Chroman is a Trusted Advisor Award Winner and named Top 100 California Attorney’s with over 25 years of experience and local service and a 2021 Super Lawyer.
This article was originally published in Santa Clarita Magazine as part of our firm’s mission to make family law information more accessible to the Santa Clarita community. Read the full feature and others at santaclaritamagazine.com.