If you are newly divorced, you’re probably overwhelmed with all of the changes going on in your life. Step back, take a deep breath, and develop a plan to secure your future.
Here are five steps you and your divorce attorney can take right now to make sure your new life is on the right track:
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Check your credit report: During a divorce, especially a contentious one, bills often don’t get paid. As a result, your credit score can take a hit. Sometimes the credit agencies make mistakes, especially if you’ve changed your last name or address. Go to annualcreditreport.com to check your credit score soon after your divorce. You are entitled to one free credit report a year from each of the three major credit agencies.
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Draft or update a power of attorney: You should appoint someone to make health care and financial decisions for you if you can't due to illness or injury. If you previously had a power of attorney, update it to remove your former spouse.
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Purchase long-term care insurance: Since you no longer have a spouse to care for you, it’s advisable to buy long-term care insurance. Health care expenses like nursing home care can quickly add up. If you’re relatively young and still in good health, these policies are affordable.
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Update your will and trusts: You must change the beneficiary on your will and trust documents if you don’t want your ex-spouse receiving your assets. You should also remove your former spouse from serving as executor of your will or as the trustee of your children’s inheritance.
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Update your life insurance and retirement beneficiaries: You must name new beneficiaries on your life insurance and retirement accounts so that your ex-spouse doesn’t inherit your assets.
Taking these steps protects you and your assets as you begin your new life. If you need legal counsel, consult with a wills and estates attorney to get you on track.
