Welcome to your new life!

Now may be the time for a fresh start. Maybe this means making that major purchase that you may have been held back from making – a shore house, a new convertible, a boat. Or taking that much-needed vacation with friends – you certainly are now "free" to roam about the country – but only if it’s in the budget. In other words, make sure you plan for it.

But before you pull out your checkbook or credit card, make sure that you put together – and complete – a checklist of items that will help prepare you for your new life.

• Assemble your post-divorce go-to professionals. Going forward, you will still need good advice from a legal and financial perspective – so be sure you have someone on hand to help with investments and estate, retirement and tax planning strategies, etc. – and all the things mentioned below.
• Divide investment assets and retirement plans according to the terms of your divorce settlement agreement. To divide 401(k)s or other workplace retirement plans (but not IRAs), you may need a Qualified Domestic Relations Order (QDRO) from the court with specifics that plan administrators need to follow on how to pay out and structure the benefits and/or account.
• Change your emergency contacts (and name, address, if necessary) on all your information at work, doctors’ offices, health club, etc.
• Thoroughly review your credit report. Cancel any joint credit cards or accounts that remain.
• Update your estate planning documents – will, power of attorney (medical and financial), trusts. If you don’t have these documents in place – now may be the time to get them done!
• Update all beneficiary designations. Workplace retirement plans (pensions, 401k/TSP/403b plans), investment accounts, retirement accounts (IRA, Roth IRA accounts), trusts, annuities, life insurance and anywhere else you may have listed your former spouse.
• Research your health insurance options and apply for COBRA (if necessary). Please keep in mind that COBRA is only temporary, and is designed to hold you over until you get your own policy – either through work or elsewhere.
• Put together a spending plan for your new life. Your financial circumstances have likely changed as a result of your divorce. Take measures to ensure that your settlement lasts as long as absolutely possible.

So when you’re sitting on a beach somewhere with friends celebrating your new beginning, you’ll feel much better knowing your financial and estate planning strategies are in order – and your trip is a reward for getting them done. Now go out and have a great time – and enjoy the kick-off to your new life!

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Bill Davis is a CERTIFIED FINANCIAL PLANNER™ and Certified Divorce Financial Analyst (CDFA). He is the Managing Partner with Vericrest Private Wealth LLC, a financial advisory firm in Newtown, Pennsylvania.