When your marriage ends, it is time to embark on a new chapter. You will need to make many adjustments in nearly all areas of your life.
In the financial arena, making the right moves can make a difference in your overall quality of life after a divorce.
The changing of legal documents
U.S. News and World Report stresses the importance of changing a long list of documents and accounts. If you change your name after a divorce, this is critically important, and you should make this a priority as soon as possible. Documents that will likely need a name change include the following:
- Government-issued ID
- Employee identification cards
- Credit cards
- Financial accounts
- Social Security Administration
- Beneficiary forms
If you have a will and an estate plan, it is crucial to change these documents. The same is true of any investment accounts, life insurance documents and property titles.
The guarding of your reputation and credit rating
While you might want to trust your former partner with certain financial aspects, it is important to understand the legal principles involved. For example, if you trust an ex to make payments on a loan in your name, and this does not happen, you will suffer the financial consequences. This could result in a rapid decline in your credit rating, which could affect future loans. Post-divorce, you should scrutinize any financial arrangements with a former partner and make sure you put legal protections in place.
While important, financial transactions are just part of recovering from a breakup. Getting your life back on track after divorce involves many social and emotional aspects as well.