Financial and investment issues to consider in divorce
There are many decisions that need to be made during the divorce process. Because today’s decisions will impact your future, this is not the time to put financial decisions on the backburner. In community property states such as Nevada, most property acquired during a marriage, excluding gifts and inheritances, is jointly owned by both spouses and is divided upon divorce, annulment or death.
As you sort out the many issues that arise during a divorce, there are a number of things you can do to help ensure that you receive what is rightfully yours, while working to secure your financial future.
Take time to review your current financial situation by gathering documents and information on income, debts, assets, and monthly expenses for you and your spouse. Using prior tax returns and statements from any investment accounts, try to separate your assets and debts in two categories; those you would like to keep and those for your ex-spouse.
Open a new checking account in your name and get a new credit card. If your paycheck is directly deposited into your account, check to be sure your earnings are being deposited.
Order a credit report to ensure that you aren’t missing anything, and contact your current credit card companies where you have open lines of credit. Request a freeze on those accounts to stop any future charges or withdrawals.
Research your health insurance plan and consider your options after the divorce.
Make any necessary changes to your estate plans. If your spouse is the current beneficiary of your will, you will likely want to change that designation to your children or other family members.
With so much to think about during a divorce, these are just a few of the things you can do to help ensure a stable financial future. An objective financial advisor can help you navigate the waters during this difficult time.
Source: The Miami Herald, “Facing the financial facts of getting a divorce,” Andre Menachem, March 10, 2012