With your divorce behind you and a new chapter in front of you, there is no better time to start thinking about your future and how to set yourself up for success in both the short and longer term.
The following is a list of the 5 most important things you should do, post-divorce, to lay the groundwork for a secure financial future:
1.) Organize your current financial situation: Read your settlement agreement thoroughly and make sure that you have taken action where needed, especially as it pertains to transferring or retitling assets. Create a list of all of your assets, debts and insurance policies. Finally, create an ongoing budget and track your expenses every month.
2.) Set short and long-term financial goals: Your goals may include purchasing a new home or car, sending your kids to college, or retiring at a certain age. Setting clear goals is the first step in working to achieve them.
3.) Update your estate planning documents: Be sure to update your beneficiaries on all retirement accounts, bank accounts, life insurance policies, etc. Update your Will, Trust and POA documents. Direct beneficiary designations will supersede your Will, so updating your Will alone is not enough. If you have minor children, consider creating a trust rather than listing the children as direct beneficiaries on your accounts.
4.) Reassess Insurance coverage: Your insurance needs may not be the same as they were when you were married. Review your coverage for health, life, disability, property, home, auto, umbrella, and other insurance policies you may have. This is also a good time to shop around for the best quotes, even if the coverage amounts remain the same.
5.) Meet with a Certified Divorce Financial Analyst (CDFA®): Navigating the financial complexities of this new chapter can be challenging. A CDFA® can help you organize your finances and prepare you for both the short and longer-term.
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For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.