Divorce finance: how to get your finances in order post-split

On behalf of The Walters Law Group, Ltd. posted in Family Law on Thursday, May 23, 2013.

After Chicago couples divorce, there are many steps that they must take to get their finances under control. A divorce may result in a woman having her name changed, which requires her to acquire a new Social Security card, passport, credit cards, bank cards and driver’s license. She also must report the name change to financial accounts, insurance companies and utility companies. This is just one part of getting a handle on finances after a divorce.

One item that divorced spouses should immediately tend to is their designated beneficiaries on insurance accounts and other accounts. After they divorce, they may not want their former spouse to inherit from them when they die. They should also change their wills, trusts, living wills and powers of attorney. They should also change the beneficiary on their life insurance and investment accounts.

Additionally, spouses should immediately seek to sever accounts that have the other spouse’s name on them to avoid incurring joint liability after a divorce. Spouses should remove the other spouse from bank accounts, investment accounts and brokerage accounts. They should do the same for credit cards, vehicle titles, IRS records and insurance policies. Some bank accounts may need to be closed down entirely. If this is the case, the spouse may want to open a new bank account. He or she may also want to open a new credit card account to establish or improve his or her credit. Before taking this step, a spouse should run a credit report on himself or herself to see where the person’s credit is currently.

There are many considerations after a divorce. The post-divorce process provides evidence that Chicago spouses need an attorney to navigate the complex divorce process. A family law attorney may also be able to seek a property division settlement that is favorable for his or her client to help with handling finances after divorce.

Source: Huffington Post, “Divorce Finance: How To Get Your Finances In Order Post-Split“, Jeff Landers, May 18, 2013