Wachovia Women and Money Guide to Planning for a Separation or Divorce

It’s probably the best known of all U.S. statistics—according to the National Center for Health Statistics, about half of all American marriages end in divorce. Separation and divorce are very emotionally trying. And, even under the most amicable of situations, certain steps need to be taken.

Put together a file of basic financial information, including tax returns for the past five years; retirement account records for both spouses; copies of all insurance policies including life, health, homeowners, and auto; current statements for all bank and brokerage accounts; mutual fund statements; a copy of the deed or lease agreement on your home; statements on all outstanding loans, including your mortgage and credit cards; employer stock option plans; copies of wills and trusts; copies of powers of attorney; receipts for major purchases; a copy of your estate plan; and copies of birth certificates and marriage licenses.

Keep a current list of all of your assets, including account numbers, beneficiary information, and physical location. When assembling the list, don’t forget easily overlooked assets like country club memberships, stadium seat licenses, life insurance policies, IRAs, and retirement accounts.
Net Worth Worksheet

Establish credit in your own name, so that you can qualify for credit if you find yourself suddenly single through divorce or the death of a spouse. Establish a checking account or credit card in your name only for the same reason.

Close all joint accounts, including overdraft protection, in writing especially if your spouse’s spending is out of control or if you are facing a divorce. If you’re separated, notify your spouse in writing of your intent to close these accounts at least 10 days before you do so. If your spouse won’t cooperate or the credit card companies involved won’t close the account on your word alone, some experts recommend reporting the card lost or stolen to force the closing of the account.

Professional Financial Advice

A professional can help you assess your financial situation when you are facing separation or divorce. They also can help you assess the cost of losing your spouse’s employer benefits, such as health and disability insurance, and other hidden tax consequences of the choices you make. If you receive alimony, for example, you must pay tax on it, while your ex-spouse will receive a tax deduction.

Locate a Financial Advisor at a Branch Near You

Once a settlement is reached, it’s important to manage and invest the proceeds, replace lost insurance coverage, and begin investing for retirement. It’s also important to develop and stick to a workable budget.
Spending Plan Worksheet

Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member FINRA /SIPC.

Member FDIC

Only deposit products are FDIC-insured.

WHAT SHOULD I PLAN FOR IF I AM SEPARATED OR DIVORCING?

Professional Financial Advice