Everyone involved with divorce goes through an emotional time, but neglecting to follow up properly could impact your assets. When you argue all the time, battling over child custody and managing alimony concerns, specific issues are common to overlook. Both spouses must become connected with their plans, regardless of who controls the household finances—the husband or the woman. If you are going through a divorce, contacting a Boston divorce lawyer is essential.
Divorce and debt: How to untangle the financial knot
- Get your mortgage and home title squared away.
The house is typically the biggest asset in a divorce. If the home needs to be sold, be aware that there can be a significant profit on the asset that must be considered.
- Undo any brokerage accounts and joint bank.
It is easier to say than to perform to “remove” a joint owner from an account. After a divorce, you must close joint accounts and create fresh individual or trust accounts. To do this, you must order fresh checks, relink, and make direct deposit or EFT payments. If you have retirement savings, the court might grant a QDRO (Qualified Domestic Relations Order), allowing you to split these assets and put half in the other spouse’s name. After a divorce, verifying IRA beneficiaries is essential to ensure the former spouse is not the beneficiary.
- Check the credit reports.
You must build your credit if your spouse manages the household finances and most expenses and credit are in their name. If a payment is missed, it is important to ensure your name is not included on anything your ex-spouse owns since your credit could be impacted.
- Home insurances
Property and casualty insurance policies are often issued in the legal name of one spouse. Typically, this is applicable with homeowner’s insurance. Make sure your name is on the insurance plan if you get property due to a divorce in case there is a claim. As you may pay more for insurance when you only require half the coverage, it would also be wise to inventory your personal property after the split.
- Life insurance issues
You could have multiple life insurance plans, some of them via your job. Make sure the beneficiaries match your requirements by confirming them. The setting up of trusts may be essential if you wish to designate minor children as beneficiaries. Review your estate plan with your attorney to ensure that your beliefs do not include your ex-spouse as trustee (unless that is what you want).
