Divorce requires restructuring one’s accounts and finances

Divorce requires restructuring one’s accounts and finances

Georgia residents getting divorced or who have been recently divorced will appreciate certain basic strategies that can help them to become adjusted and transitioned into a new mode of life. There are many things to do on the financial and organizational level to get up and functioning again. For women who have opted for a name change after the divorce, all identification cards, including driver’s license and credit cards, must be updated by sending notification to the appropriate agencies and companies.

Other items such as utility bills, passports and school records must be corrected. Changes of address must be sent to all interested agencies, companies and persons. Where car titles and insurance policies require name changes or new beneficiaries, that must be accomplished. Retirement and investment accounts must also be corrected if necessary. It is important to get one’s spouse’s name off of accounts that he or she will no longer share.

It will be important for the person to construct a new budget in order to visualize and implement the financial dynamics of survival going forward. Wherever possible, setting up automatic payment accounts to fit within that budget will keep things flowing smoothly. This regularity in paying all accounts will also stimulate a growth in one’s credit score.

Although having good credit for the sake of incurring more debt is not generally going to be a positive planning technique, good credit can come in handy in the future for a number of vital reasons. Therefore, working on improving the three-bureau report after divorce is a strong move toward increasing financial independence. An intensive review and evaluation of all remaining accounts, such as retirement and investment accounts, should be conducted to fit one’s assets into a grand plan that will take one into retirement and beyond. New legal documents, such as a will and powers of attorney, must be prepared and put in place, pursuant to the mandates of Georgia law. 

Source: msn.com, “How to Plan Your Finances After Getting a Divorce“, Emily Green, Dec. 2, 2017

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