✓ Revisit Your Banking and Credit Cards

Many married couples find joint banking and credit card arrangements to be a convenient way to manage their household finances. However, per your divorce decree or as appropriate, you may want to close all joint credit card, bank, safety deposit box and credit union accounts. Then, open new accounts in your own name as soon as possible. Seek professional financial or legal advice if you’re unsure about taking that step.

Changing usernames and passwords to all financial accounts and examining your system for paying bills are also good banking-related tasks to consider. Late payments can hurt your wallet and your credit score, so it pays to stay on top of things. Consider paying bills through an automatic withdrawal from a checking or savings account.

✓ (Re)Establish an Emergency Fund

Financial experts suggest having some easy-to-access cash set aside for unexpected expenses, better known as an emergency fund. This is money that’s kept in a low-risk account, such as a savings account.

It’s often recommended to start with at least $1,000 in your emergency fund, with a goal to keep three to six months of living expenses in reserve.

Here are a few tips to build your emergency fund.

• • Pay yourself first. Establish an allotment or bank transfer to set aside money each paycheck.
  • Consider selling unneeded household items online or through a garage sale.
  • Explore adding another source of income such as a second job.
  • Visit the IRS Withholding Calculator to see if you should adjust your withholding to get more money per paycheck.
  • Explore the possibility of a one-month deferral on your auto loan payment.

✓ Keep Up with Your Credit and Debt

At AnnualCreditReport.com, you can request a free copy of your credit report from each of the three major credit bureaus. Your credit report shows all the current credit that’s open in your name, as well as your history. Be sure to check for any name changes listed on your credit report because of your divorce decree. As you emerge from your divorce, pay special attention to your credit report to monitor for unauthorized activity like new accounts opened in your name. Also read your divorce decree to confirm who is responsible for paying joint loans; it’s important to monitor to make sure payments are being made.

✓ Retitle Property (Houses and Vehicles)

If you and your divorcing spouse own a home together, your divorce decree may call for the conversion of ownership of the property from both of you to just one of you. This can often be done by executing a quit claim deed. This deed must be filed with the county recorder where the property is located. You may also be required to refinance your mortgage or work out a mortgage assumption.

Other property that could potentially require title changes are vehicles, boats and recreational vehicles. The exact steps to doing this typically vary by location, and your legal counsel should be able to direct you to how to accomplish this for your situation.

✓ Review Your Insurance

Many people focus on the division of assets during a divorce, but the separation of insurances can be just as important. Review the coverages, premiums, deductibles and beneficiaries for each of your insurance policies. Since your circumstances have likely changed, make sure you have adequate protection that makes sense for your new situation.

As a reminder, former spouse health benefits through TRICARE will end on the day of your divorce unless you meet certain requirements. Ensure you arrange for coverage via TRICARE or other avenues, such as an employer-based health insurance plan or Healthcare.gov, before this date.

If you were covered by Family Servicemembers’ Group Life Insurance (FSGLI) at the time of your divorce, you can keep coverage for 120 days, but you will become responsible for making the premium payments. During this time, you can convert your FSGLI policy into a commercial life insurance policy. Visit the VA website to learn more about FSGLI.

✓ Update Your Estate Plan and Legal Documents

An estate plan helps your loved ones navigate a difficult time with less confusion, conflict and cost. Your circumstances, of course, have changed in the wake of a divorce. However, the distribution of your wealth and your medical wishes, should you become incapacitated, will not change unless you update the following documents that make up your estate plan. These include your:

• • Will
  • Power of attorney (POA)
  • Medical POA
  • Living will or medical directive
  • Trust (if applicable)
  • Family care plan

In addition to updating these key estate planning documents, it’s also important to review and update the beneficiaries on your accounts, as necessary and appropriate. Remember, who you designate as a beneficiary on your retirement accounts or life insurance policies will take precedence over your will, so make sure the right people or trusts are named. Consider the ways to ensure your minor children, if you have any, are included in your estate plan. Also be sure to give careful consideration for any special needs child.

Name a guardian if you have minor children. Generally speaking, your ex-spouse would be named if he or she is the parent of the child(ren). If this is not the case, or if something should happen to both you and your ex-spouse, it is important to name a guardian for any minor children. Your divorce decree may provide specific guidance on this subject, so be sure to update your documents accordingly.

Speaking of names, if you plan to change your name because of your divorce, obtain multiple copies of the divorce decree or court change of name document to update accounts and legal documents. Important documents include:

• • Social Security Card — Request a new Social Security card from the Social Security Administration.
  • Driver’s License — Update your driver’s license at the local Department of Motor Vehicles.
  • Passport — Request a name change for your passport, if you have one, through the State Department.