Even in the best of situations, a divorce can be a stressful, emotional time. A couple must divide one household into two – halving their buying power and reducing financial security. While the divorcing couple will make it through this challenging process with the help of family, friends and a trusted legal professional, there are still tasks that need to be accomplished when the divorce is complete.
Each partner must take the time to thoroughly examine any shared accounts and revise them to reflect the current state of affairs. This can include:
- Shared social media accounts
- Shared checking or savings accounts
- Updating beneficiaries
- Updating estate planning documents
- Updating retirement accounts
- Updating insurance policies
The final point on the list can quickly become a complex endeavor. Married couples, even in a shorter duration relationship, will often build multiple insurance policies to account for different aspects of their lives.
- Health insurance: While there are many options open to them, generally a married couple will have health insurance through one spouse’s employer. In the event of a divorce, it is likely that one spouse will have to find his or her own medical insurance coverage. This could mean exploring options such as COBRA, getting coverage through your own employer or finding a new insurance policy.
- Auto insurance: It is important to notify your carrier as soon as possible regarding your life changes. Removing your ex-spouse from your policy ensures you aren’t held liable for any future insurance claims. Additionally, your premiums won’t go up based on your ex’s errors in judgement.
- Life insurance: It is crucial that you examine your life insurance policy and change your beneficiaries. This way, you could ensure the financial protection of those you love after you pass away. It might be wise to discuss your life insurance policy with a trusted attorney as they can be rather complex. You might need to consider factors such as death benefits, alimony or child support. Additionally, the type of policy you carry could impact the number of revisions that are necessary.
After a divorce, it is wise to make a list of things that need to be addressed. From something as simple as a shared email account to something as complex as insurance on the matrimonial home, these factors will likely need to be examined and revised. Do not hesitate to seek the guidance of a skilled family law attorney.