Financial Accounts Checklist: What to Review in the New Year
Divorce changes things, your financial life included. If you have recently divorced, or are going through a divorce this year, don’t forget to re-examine these financial areas of your life.
1. 401k: It’s important to change the beneficiaries on all retirement and bank accounts and periodically verify those beneficiaries throughout your life changes. These assets pass outside of your will.
2. Will: Your current will may not align with your current relationships. You will need to scrap the former will and write a new one to ensure that all of your assets are going to the right people when you pass away.
3. Beneficiaries: A lot of accounts ask you to name a beneficiary, such as your employer life insurance, bank accounts, and pensions. It is important to keep these up to date throughout all of your life changes to ensure that the assets in your retirement accounts are going to the right people.
4. Title: You will need to take extra steps to change the title on all of your properties after your divorce; including your car and your home. The divorce decree does not automatically change this for you.
5. Insurance: Insurance coverage plans will need to be changed to reflect your current heirs. Call your insurance company as soon as possible to inquire about revising your protection plan based upon your family’s current and future financial needs.
If you need help navigating the financial considerations of a divorce, join us at our next Second Saturday divorce workshop.
