Divorce & Money: It Starts with These 3 Tips

Divorce & Money: It Starts With These 3 Tips

Going through a divorce is one of the most emotionally and financially complex experiences a person can face. While the legal process unfolds, it's easy to overlook the financial steps that can protect your future. Howard Gershman, a financial advisor with over 20 years of experience and a trusted Divorce Network Pro professional, shares three essential tips to help you take control of your financial picture, starting today.

Tip 1: Get a Copy of Your Credit Report

One of the first things you should do when navigating a divorce is to pull your credit report. You can get it for free at annualcreditreport.com and you don't need to pay for your credit score. The report itself contains the information that you need.

Your credit report shows every account in your name, any joint accounts with your spouse, outstanding balances, payment history, and any accounts you may not even be aware of. Reviewing it gives you a clear picture of where you stand. And if anything is inaccurate, you have the right to dispute and correct it.

This is your financial foundation. Know what's on it.

Tip 2: Open a Bank Account in Your Own Name

If all of your accounts are currently joint accounts with your spouse, it's important to establish an account that is solely yours. You don't need a large sum of money to open one, what matters is that you have a financial account that belongs to you and you alone.

Having your own account gives you access to funds during the divorce process, protects your financial independence, and ensures you have a place to receive income, support payments, or any other funds that come your way. It's a simple step that creates an important layer of security.

Tip 3: Review and Update Your Beneficiaries

This step is often overlooked, and it can have significant consequences if it's not addressed.

Review the beneficiary designations on all of your investment accounts, retirement accounts, and life insurance policies. If your spouse is currently listed as a beneficiary and you haven't updated those designations, those assets could pass to them regardless of what your divorce agreement says.

For bank accounts, the process works a little differently. You'll need to visit your bank in person to designate who should receive the account after your death — this is called a Payable on Death (POD) designation. It doesn't go through your will or the courts; it transfers directly to the person you name. Make sure that person reflects your current wishes.

A Note From Howard

These three steps won't solve everything but they give you a foundation of clarity and control at a time when both can feel hard to come by. Knowing where you stand financially is the first step toward building what comes next.

Howard Gershman is a financial advisor with over 20 years of experience and a proud member of the Divorce Network Pro professional community.

https://divorcenetworkpro.com/professionals/howard-gershman

Phone: 845-531-9222