Our readers in Tennessee know just how impactful a divorce can be on a person’s life. People get married thinking that they’ll be with their spouse forever, but sometimes it doesn’t work out that way. While a divorce allows spouses to move on and live their separate lives, the impact of a divorce on the ex-spouses’ finances can be significant.
As a recent article noted, in the aftermath of a divorce there are certain steps that people need to take to ensure that their finances are in order. For example, those who have life insurance policies may want to change the designated beneficiary. After all, most people designate their spouse as the primary beneficiary, but they don’t want their former spouse to recover their insurance proceeds after divorce. The same is true for IRAs and other retirement accounts.
Additionally, newly divorced Tennessee residents will also likely need to revise their estate planning documents. Similar to life insurance policies, most people designate their spouse as the primary beneficiary in estate planning documents. That aspect of estate plans will likely need to be changed and, although leaving the other spouse as the designated guardian of minor children may not change, changing the “back up” guardian who is preferred might change.
The impact of a divorce on a person’s emotional and financial well-being cannot be understated. However, with the right steps, newly divorced Tennessee residents can make sure that they properly address their overall financial health in post-divorce life. Tennessee residents who find themselves wondering about the financial impact of divorce may need to get more information about their own unique circumstances.