After struggling through a challenging divorce process, the last thing you want to do is look at more financial paperwork. Unfortunately, as unsavory as the activity sounds, it is a critical part of ensuring your financial world accurately reflects your new circumstances.
For most, a divorce signals the start of an exciting, independent life. Unfortunately, during your marriage, numerous financial policies were created as a given. Now, post-divorce, it is time for you to thoroughly examine these documents and ensure they are correct, including:
- Life insurance: Over the course of the marriage, it is likely that your spouse was the default beneficiary to your life insurance policy. After the divorce, however, it is wise to re-evaluate who should receive the benefits of your policy.
- Health insurance: Most married couples share a health insurance policy. Generally, they are both covered under one spouse’s employer-sponsored policy. After the divorce, it is important to ensure you aren’t paying premiums on an inaccurate policy. This can also mean dental insurance and vision coverage as well.
- Vehicle insurance: During the marriage, it is likely that both spouses appeared as drivers on all vehicles. Property division during the divorce, however, will likely shift ownership. The insurance policies should correctly reflect who will be driving the car or truck.
- Homeowners insurance: Like the vehicle insurance, the court will address ownership of the marital home during asset and debt division. It is crucial that the couple consider the home’s insurance policy to make certain the correct people are listed as policy-holders.
It is wise to carefully review your divorce order to ensure you are not changing something you previously agreed to. For example, the division of assets and debt responsibility can also include language regarding various insurance policies. It is crucial that you do not act in haste and remove your ex-spouse from any policies that he or she is legally entitled to.