Divorces are not great and there are always a lot of hurt to all parties. But its something that does happen and not only does it affect ones heart, mind and emotions but also a persons finances and financial planning. To ensure that you remain financially secure and organized, here are five critical steps to take after divorce.
1. Update Beneficiaries on Your Policies
Your entire financial plan has now changed. Sit with your Financial Planner, review and update your new goals, needs and objectives. Update your beneficiaries whilst updating your planning. If there is some post marital debt, look at a debt reduction strategy and start getting these paid off.
2. Update Beneficiaries on Your Pension or Provident Fund
Pension and provident funds often require specific forms to update beneficiaries. Make these changes promptly to secure the rightful distribution of your benefits if something had to happen. Keep a copy of the dated beneficiary nomination form that you have signed and submitted to the administrator in your file.
3. Update Your Will
Your Last Will and Testament is an important document where your wishes are documented and your wishes should be executed in the event of you passing. Often overlooked, it is such an important document which should be updated as soon as possible.
4. Draft an Updated Budget
With income and expenses likely to shift post-divorce, creating a realistic monthly budget is essential. This helps you stay on track financially and adapt to your new situation.
5. Update Passwords on Your Accounts
To safeguard your financial and personal information, update the passwords on all your accounts, including online banking, insurance portals, and investment platforms.
Your Financial Planning Partner.
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