Modify your will or estate documents accordingly
In most wills and estate planning documents, spouses designate one another as beneficiaries. If you’ve also done the same, after the divorce, you’ll have to update those documents to comply with your new situation.
When it comes to estate planning, things are a bit trickier because they often refer to more than the disposition of financial assets to spouses. Some provide power of attorney for other matters, such as taking life-or-death decisions (when the spouse if connected to life support, for instance). Therefore, go through your documents carefully and update them as per your current wishes and intentions.
Check your credit
After you divorce, your financial life is no one but your own to control and manage. Except for your credit. Any joint debt you’ve entered into with your spouse while you were married remains a joint liability. More than that, in community property states, you could also be held liable for the debt incurred by your ex-spouse during the marriage, even if you knew nothing about it.
To make sure you’re not liable for more than you can handle, verify your credit report to see the exact status of your debts. If you want to make certain loans on your own sometime in the future, having a good credit score can make or break those plans.
Update your insurance policies
Married people often share various insurance policies, such as home, car, health and life insurance. After you divorce, it’s paramount that you modify, update and even cancel some of those insurances, depending on your current situation. It might be unpleasant but it’s something that comes with divorce, so you have to do it.
Any updates to these insurances could drastically alter your premiums – in most cases up, but, if you’re lucky, it could also be down – once you opt for individual policies. As a minimum, amend the beneficiary section and remove your ex-spouse from the equation.
