If your marriage has ended and you are single again, make sure all your financial arrangements reflect your new status. Here are a few tips to help get your new financial life off to a good start. Tip #1: Change Your Beneficiary. A divorce generally has no automatic effect on beneficiary designations. So, unless you want your ex-spouse to get all your money, make sure you change beneficiary designations on your retirement accounts and life insurance policy and in your will. Tip #2: Remove Your Spouse’s Name from Joint Credit Card Accounts. You also should notify credit bureaus of your divorce so that future reports will be based only on your credit use. Tip #3: Adjust Your Investment Strategy. If your investment goals have changed, you may want to shift your assets into less — or more — risky investments. Also, make sure the amount and frequency of your investments are appropriate for your new income and goals. Tip #4: Review Your Retirement Plans. Your retirement years may look very different without your spouse in the picture. You may want to start making additional contributions to your 401(k) or IRA to maintain your current lifestyle after retirement. Tip #5: Make Sure the QDRO Is Received. If your divorce settlement determined how future pension and/or retirement plan benefits will be divided, your ex-spouse’s employer may need to receive a Qualified Domestic Relations Order (QDRO). Make sure the plan administrator gets the QDRO so that you will be able to receive your benefits. Tip #6: Contact the Social Security Administration. Even though your marriage ended, your ex-spouse’s work record may entitle you to receive additional benefits.
Financial Tips for the Newly Single
