It is not easy being suddenly single. Whether from death or divorce, the experience can put you on an emotional and financial roller coaster. Such circumstance may leave you feeling alone and overwhelmed. Before an event like this happens, assess the big picture so you are prepared.
Know Your Documents. Key documents you will want to be familiar with include: Income tax returns, employment records and contracts, business financial statements and records, earned and passive income information, social security income and benefits, personal property taxes, bank relationships, investment accounts, corporate stock plans, retirement plans, wills and trusts, life insurance, general and liability insurance, annuities, loans, credit lines, charge cards, pending lawsuits, real property deeds and title, property owned prior to marriage, memberships, and safe deposit boxes.
Make the Change. If you become suddenly single you should update your account titles, your wills and trusts, your retirement plan beneficiaries, and create a new estate plan. And, if you have children be sure to detail arrangements for their care should something happen to you.
Maximize Benefits. If you are employed, be sure to review your employer benefits. Use the benefits that make the most sense for your new situation. Employee benefits such as retirement plans, group term life insurance, and group health insurance are valuable considerations. If you are not employed, be sure you have enough life, long term care and disability coverage. These steps will ensure protection of your assets and financial arrangements for your children.
Establish Long Term Goals. A sudden life change may also require reassessment of your long term goals. Begin with a review of your net worth and cash flow to determine an appropriate budget and financial plan for your future. Your plan should include considerations for retirement, health care, and care of children. Until you have an updated plan in place, you may want to avoid any major financial decisions.
Moving Forward. Although no one looks forward to being suddenly single, you can certainly handle the transition with the proper support system. Turn to your network of friends, family and trusted advisors to help you navigate issues you may not be familiar with.
Glenn A. Cunningham is a CERTIFIED FINANCIAL PLANNER™ professional located in Temecula. He is the owner and President of GC Asset Management, a Registered Investment Advisor that specializes in Wealth and Retirement Strategies. For more information visit www.GCAsset.com or call (619) 356-8810.