Receiving your finalized divorce decree can be a whirlwind of emotions. Whether you feel relief, sorrow, or a mix of both, it’s essential to stay focused because there are important steps you still need to take.
Start by thoroughly reviewing your decree. Make sure you understand everything that has been awarded to you, including potential financial obligations or entitlements. If a Qualified Domestic Relations Order (QDRO) is required to divide a retirement plan, don't delay. Get that process started as quickly as possible. This is also an ideal time to consult with a financial advisor. Together, you can map out your new financial landscape, open necessary accounts, and consolidate any outdated ones.
Review all accounts. It’s crucial to extricate your financial life from your ex-spouse's. Remove their name from all accounts, including utilities, banks, credit cards, and insurance policies. If you haven't already, now is the time to get a credit card solely in your name. This is an important step in establishing your own financial identity.
Get Organized. Organization is key during this transitional period. If you don’t already have a system in place, create a filing system for your important financial documents and any statements relevant for tax purposes. This can be done electronically if you’re tech-savvy, but the important thing is that it exists.
Don't forget about your estate documents. Revisit and revise beneficiaries on your accounts and insurance policies. Failing to do this can result in unintended consequences that could cause additional emotional distress later on.
The next order of business is to update your will. Your life circumstances have changed significantly, so your will should reflect these new realities. If you have any existing trusts, they likely need to be terminated and new ones set up.
While the emotional side of divorce is often overwhelming, taking these business-related steps can be empowering. They offer you a chance to establish a new life and a fresh identity. Handling these tasks may not be the most thrilling part of your journey, but with each completed step, you're laying the foundation for a healthier and happier future.
Remember, today is the first day of the rest of your life. Make it count.
This information is not intended to be a substitute for seeking legal advice from an attorney. For legal or tax advice please seek the services of a qualified attorney and/or qualified tax professional.
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Jodie Lane is an Independent Wealth Advisor and a Certified Divorce Financial Analyst®; however, such registration does not imply a certain level of skill or training and no inference to the contrary should be made. The information presented is for informational purposes only, does not intend to make an offer or solicitation for the sale or purchase of any securities, and should not be considered investment advice. Jodie Lane has not taken into account the investment objectives, financial situation, or particular needs of any individual investor. There is a risk of loss from an investment in securities, including the risk of loss of principal. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular investor's financial situation or risk tolerance. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed here. Past performance is not indicative of future results. Investments involve risk, including loss of principal and unless otherwise stated, are not guaranteed. The information provided reflects Jodie Lane's views as of certain time periods, such views are subject to change at any point without notice.
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