Divorce can be a messy traumatic experience that can place both an emotional and financial strain on both parties. When going through a divorce it is a good idea to write a new updated will. Make an inventory of all financial records and paperwork and be sure that beneficiary designations are updated. The beneficiaries on 401(k) plans, IRAs, and pensions should also be updated because state laws can vary and a person should not expect these retirement accounts to be updated automatically. It is also extremely important to make sure that there is a new durable power of attorney so that when a person becomes incapacitated the right people are going to take charge of their financial and health care decisions. Individuals who are newly single will also want to review or set up trusts to help protect assets creditors.
See Melissa Montgomery-Fitzsimmons, Divorcing? How to make sure your ex doesn’t end up with your assets, Market Watch, March 7, 2016.
