Debt and Assets
- Make a list of your assets and debt as you will need to do a financial affidavit for the divorce.
- Notify creditors that you will no longer be responsible for your spouse’s debts.
- Close joint bank and credit card accounts and pay off joint credit cards if possible. If the latter is not possible, try to develop a plan where each spouse writes a check for their expenses incurred on the joint cards. This ensures that the appropriate party is paying down their debt.
- Open new bank accounts and credit cards, if you have none in your own name, and remove authorized parties on any open credit accounts.
- If you own real estate jointly, discuss how those assets will be split. Will one of you remain in the home or sell and split the proceeds? Verify through documents if any property has unpaid taxes or liens.
Documents
- Gather copies of all your financial records like tax returns, birth certificates, education records and social security cards. If there will be a name change, note which documents will need to be updated post-divorce and remember your driver's license.
- Obtain extra copies of your divorce/separation agreement.
- Obtain and review your credit report. Work to fix inaccuracies.
- Be prepared to create or revise your will, living will, durable power of attorney, health power of attorney, and trust.
Investments and Insurance
- Review your investments, retirement plan and who is advising you. Many times one spouse takes the lead on investing and planning and it may not have been you. Do your current investments, allocation and personality of your financial professional serve you?
- Be prepared to review and update beneficiaries on all investment and insurance accounts (IRA, 401k, Life Insurance, Annuities, etc.)
- Discuss investments for children’s education. How is the cost going to be split between ex-spouses? As a couple, did you have one custodial account or 529 that one spouse should remain custodian/owner on, but maybe the second spouse should open his/her own to contribute to?
- Should one spouse carry life insurance on him/herself to cover the cost of child support and/or alimony due to untimely death that will interrupt payments?
Securities offered through LPL Financial, Member FINRA/SIPC. Athene Wealth Management and LPL Financial do not provide legal advice or services. Please consult your legal advisor regarding your specific situation. The opinions voiced in this material are for general information only.