Post-Divorce: 10 Steps to Update Your Accounts

Going through a divorce can be tough. There are so many things to think about, from the emotional side of things to all the practical stuff. But one thing you definitely shouldn't forget about is your finances. It's really important to update your accounts and make sure everything is in order now that your situation has changed. In this article, we'll take you through the 10 steps to update your accounts after a divorce, making the whole process a bit easier for you.

Step 1: Assess Your Accounts

The first step is to take stock of all your financial accounts, including bank accounts, retirement accounts, investment accounts, insurance policies, and any other financial assets. Make a list of each account, its current status, and any joint ownership.

Step 2: Review Your Divorce Decree

Your divorce decree is a legal document that outlines the terms of your divorce, including the division of assets and liabilities. Review this document carefully to understand your financial obligations and rights regarding joint accounts.

Step 3: Close Joint Accounts

For joint accounts that are no longer needed or that are required to be closed as per your divorce decree, contact the financial institution to request closure. Ensure all outstanding balances are paid off and transfer any funds to new or individual accounts.

Step 4: Change Account Ownership

For accounts that are to be maintained individually, contact the financial institution to change the ownership details. This may involve providing a copy of your divorce decree as proof of your new status. Update your personal information, including your name and contact details, as necessary.

Step 5: Update Beneficiary Designations

Review and update the beneficiary designations on your accounts, including retirement accounts, life insurance policies, and any other accounts with designated beneficiaries. This ensures that your assets will be distributed according to your wishes in the event of your death.

Step 6: Update Your Will and Estate Plan

If you have a will or estate plan, review and update it to reflect your new circumstances. Update any provisions related to your former spouse and ensure your assets are distributed according to your wishes.

Step 7: Update Your Tax Information

Update your tax information with the IRS and any state tax authorities to reflect your new filing status. This may include changing your filing status from married to single or head of household.

Step 8: Consider Financial Planning

Consider meeting with a financial advisor to review your financial situation and make any necessary adjustments to your financial plan. This can help you set new financial goals and ensure you're on track for a secure financial future.

Step 9: Monitor Your Accounts

After updating your accounts, monitor them regularly to ensure everything is in order. Keep an eye out for any unauthorized transactions or changes to your accounts and report them immediately.

Step 10: Seek Legal and Financial Advice

Divorce can have complex financial implications, so it's advisable to seek the guidance of legal and financial professionals. They can provide personalized advice based on your unique situation and help you make informed decisions.

Making sure your accounts are updated after a divorce is a big deal for getting a grip on your financial future. Just follow these steps and get professional advice if you need more assistance. That way, you can get your finances in order and kick off this new chapter of your life with a sense of confidence.