In most cases, divorce is one of the hardest trials one will endure in life. People become emotionally charged, even devastated. In that state, it is hard to think through the logistics of what needs to be done at the onset. As a separation and/or divorce come to fruition, there are many things to do in preparation for transitioning from married life to single life.
First, focus on protecting your credit. Start by pulling your credit reports from all three credit bureaus (Equifax, Experian and TransUnion). When possible, close all joint credit cards and lines of credit to avoid adding additional debt in joint names. In addition, implement a credit freeze at all three credit bureaus, if not already in place.
Next, take charge of your online life. Be sure to secure all personal logins and passwords, changing passwords as needed. On that note, it may be necessary to update the “Find My Phone” status or password. If leaving computers behind, get copies of important personal information and documents off of household computers.
Finally, update your estate plan. Take possession of your estate documents and update them as needed to reflect the relationship change. Make sure to update beneficiary designations on all life insurance, retirement accounts, pensions and annuities. Failing to do this important step can lead to an ex inheriting assets.
To read more from our Second Quarter Newsletter, click here.
- Written by Juli Erhart-Graves, Worley Erhart-Graves Financial Advisors