The “big D” might stand for divorce, but it’s also a “d” for “disruptive.” No life event shakes up nearly every aspect of your life quite like it, and for many people, a divorce can truly be life-altering — both in good and bad ways, but disruptive, nonetheless.

Financially speaking, divorce brings many new questions to bear: Was your ex the primary breadwinner? Can you still afford the house? Do you need to go back to work, change jobs or even change careers? How does this impact your retirement?

No matter where you are in the process – getting ready to leave your marriage, slogging through the slow legal process, or emerging on the other side, ready to start your new life – divorce often requires a lot of changes to your financial picture.

At MN Wealth Advisors, we’ve worked with many clients to guide them through this stage of life and have developed a “checklist” to help streamline the process. If you’re navigating a divorce, hopefully this can be a helpful tool to keep you focused on your goal and hopefully prevent the inevitable life disruption from feeling too, well, disruptive.

Engaging Legal Counsel

One question we often get from our clients is whether to engage a divorce attorney or not, and more specifically whether or not to engage their own attorney. Our stance is simple: hire your own lawyer. No matter how amicable your divorce might seem, there will be things that arise that need to be negotiated, and having a lawyer who can take that burden off your shoulders will make all the difference – and could protect you from making decisions that could negatively impact you for the rest of your life.

Before the divorce

This section of your to-do list will help you both prepare for the endless paperwork requests from your lawyer but also ensure all your ducks are in a row so you can better protect yourself through the process.

• Gather any existing marriage and divorce paperwork, such as prenuptial/postnuptial agreements, court orders, etc.
• Find birth certificates and Social Security numbers for you, your spouse and your children.
• Make sure you have account information (account numbers, balances, etc.) for all credit cards, household bills, assets, insurance policies, investment and retirement accounts, and debts (including business loans and personal loans).
• Find the titles for all automobiles owned by you, your spouse or both of you.
• Gather property titles and mortgages (including your monthly payment and outstanding balance).
• Print a copy of your will.
• Gather personal and business tax returns for the past three years.
• Be ready to present employment records, including dates of employment and salaries.

During the divorce

Because something that shouldn’t take that long always ends up taking MUCH longer than it should, you’ll have lots of time to check off other important steps to financially protect yourself, both now and in the future.

• Remove your name from anything that will go to your spouse (assets, accounts, bills, etc.). This can protect you from liability issues (someone gets hurt on your property, for example) as well as creditors coming to collect a debt. Do this as quickly as possible.
• Make a timeline of important events. Having a clear rundown with dates and details can be valuable when it comes to negotiating the division of assets.
• Change passwords to credit card accounts and bank accounts.
• Turn off permissions for shared devices and shared cloud services. With so many stored passwords on devices these days, make sure to update your accounts to limit access.
• Consider opening a P.O. Box to keep correspondence confidential.
• Open a separate bank account and credit card in just your name.
• Talk with your financial advisor to ensure you have appropriate arrangements (such as opening a new brokerage or trust account, for example) for any securities you might receive from the divorce.

And while it’s not directly related to your financial health, make sure to prioritize self-care during this time. Surround yourself with friends and family who will be your advocate. If you feel adequately supported, you’ll be in a stronger position to stick up for yourself during negotiations.

After the divorce

Once that final decree has been issued, take a moment to breathe — but just a moment. Plenty of financial details still need your attention:

• Update your beneficiaries on your retirement accounts and insurance policies.
• Head to the DMV to make necessary updates on vehicle titles (and don’t forget to update your car insurance at the same time).
• If you forgot to remove your name from any debts that are no longer yours (or joint bank accounts or utility bills), make sure to do that now.
• If necessary, update your name and address on any existing or new accounts and recurring bills (and don’t forget about any automatic bill payments).
• Talk to an attorney about updating any deeds or titles if any property changed hands (and let the mortgage holders know as well).
• Create a rollover IRA in your name only for any assets you may be receiving from your ex’s IRAs. (Don’t take those transfers as cash distributions, as that will mean expensive tax penalties.)
• Let all the appropriate taxing authorities (like your city and county) know about any changes in your real estate tax responsibilities.
• Update your will as needed (or create one).
• Investigate Social Security benefits: If you’re at least 62 and were married for 10 years or more to someone eligible to receive benefits, you maybe be eligible to receive benefits as well. Learn more about the conditions.
• If you need a new health insurance plan, investigate your options.
• Work with a financial advisor to reevaluate your investment allocations, retirement plan and your life insurance needs.

Plan for a brighter post-divorce future

Now’s the time to start this new chapter of your life on a solid foundation. Work with a trusted financial professional to help you work out your new priorities and how a new budget and financial plan can help you achieve them.

Even the most amicable divorce is often messy, and the process is never anything short of disruptive. But with some proper planning, you can be sure you and your finances are set up for success for the road ahead.