Once the divorce is final, several updates are essential to secure your financial future.

• Update beneficiaries: Immediately change beneficiaries on all your accounts, including life insurance policies, retirement accounts, and bank accounts, as your ex-spouse may still be listed.
• Revise estate plan: Update your will, living trust, power of attorney, and healthcare directives to reflect your new wishes and remove your former spouse from any decision-making roles. FNBO's trust and estate planning professionals can offer guidance on estate planning.
• Review insurance policies: Ensure you have adequate health, auto, and homeowners/renters insurance in your name.
• Revisit financial goals: With your new financial structure, reassess your personal savings goals (e.g., emergency fund, retirement) and investment strategy. A financial advisor can help you rebuild and plan for your individual future.

Major assets accumulated during marriage are typically subject to division, which can be difficult to manage.

• The shared residence: If one spouse keeps the home, they may need to refinance the mortgage to remove the other spouse's name and potentially buy out their equity. If neither wants the home, it may be sold, and proceeds divided. A mortgage specialist can guide you through refinancing options.
• Retirement accounts: Retirement accounts (like 401(k)s and IRAs) are often divided using a Qualified Domestic Relations Order (QDRO) for employer-sponsored plans, or through direct transfers for IRAs. This process is complex and often requires legal expertise to avoid tax penalties.
• Investments: Joint investment accounts will need to be divided according to your settlement agreement. A financial advisor can help with the transfer and re-balancing of your individual portfolio.

Divorce significantly changes how you manage shared finances and can affect your credit.

• Separate joint accounts: As soon as legally advisable (consult your attorney), work to separate or close joint checking accounts, savings accounts, and credit cards. Even if a divorce decree assigns debt to your ex-spouse, creditors can still pursue you if your name is on the joint account.
• Monitor credit scores: While divorce itself doesn't directly impact your credit score, how joint debts are managed during and after the process absolutely can. Missed payments on shared accounts will negatively affect both parties.
• Establish individual credit: If you've primarily relied on joint credit, focus on building your individual credit history with new accounts in your name only.

And don’t forget to update all direct deposits and automatic payments to your new individual accounts.

Prioritizing financial clarity and independence is key.

• Gather all financial documents: Before making any major moves, compile comprehensive records of all assets (bank accounts, investments, real estate, retirement funds) and debts (mortgages, credit cards, loans). This includes joint and individual accounts.
• Open your own account: If you don't already have one, open a checking account and a savings account solely in your name. This establishes your financial independence and provides a place for your individual income.
• Understand your credit: Get a copy of your credit report from all three major bureaus (Experian, Equifax, TransUnion) to identify all joint debts and monitor for any unusual activity.

Remember to seek legal counsel early to understand the specific laws in your state regarding marital property and debt division.