Though no one likes to imagine that their relationship won’t last, statistics indicate that 36 percent of all marriages end in divorce. While the dissolution of a marriage or the end of a cohabitating relationship is never pleasant emotionally, the financial implications can be especially devastating — unless you take measures to ensure your financial security. Protect yourself when leaving a relationship by taking these 8 steps.
1) Immediately, take inventory of what you own and what you owe. Laws regulating the division of assets vary from state to state, so speak with your financial professional about the rules that apply in your case. But before it’s decided who’s legally entitled to what, you’ll have to list all of those assets and liabilities, such as:
• 401(k), pensions, and other retirement accounts
• Bank and savings accounts
• Insurance policies
• Stocks, bonds and mutual funds
• Social security
• Alimony
• Furniture, appliances, equipment, art and collectibles
• Vehicles
• Real estate and mortgages
2) Engage the services of a trusted financial advisor. Breaking up is never easy to do, and you’ll need someone to help you wade, step-by-step, through the myriad of legal, financial, tax and investment options available to you. When you’re dealing with complex tasks such as amending your will, obtaining new insurance quotes, changing beneficiaries on insurance and retirement accounts, and dealing with taxes, it’s best to have a financial planner you trust on your side.
And when it comes to getting professional advice, the sooner the better. Ideally, you should meet with your advisor before or during the dissolution process, rather than after, to best protect your interests.
3) If you don’t have your own bank accounts and credit cards, establish them. If you have joint accounts, open new accounts and apply for credit in your name only at a different bank; don’t authorize your spouse or partner as a joint account holder or user. If you can’t close your joint accounts, keep a close eye on account activity and watch your credit report. Educate yourself as to the financial jargon so you can stay fully informed.
4) Draw up a budget, even if you’ve never had one before. When you’re use to living off of two incomes, the shift to one can be a shock. You might not only have to make new choices as to your day-to-day lifestyle, you’ll need to consider the status of your retirement planning and other future expenses, too.
5) Review the beneficiaries and contingent beneficiaries on all of your qualified retirement accounts. Imagine your surprise if this essential step was overlooked… and you ended up providing your hard-earned retirement savings to your previous spouse or partner! Don’t forget about beneficiaries on insurance, too.
6) Re-create your legal documents to reflect where you want your assets to go. Documents to review and rewrite may include:
• Your will
• Durable powers of attorney
• Health-care proxy form
7) Don’t neglect your tax and insurance planning. At work, you’ll want to review your tax withholdings to reflect your new household status, as well as your insurance program.
8) Try something new. While it’s essential to keep your financial plan in focus, trying new things can help you work through the emotional aspects of the dissolution process. Stay healthy by exercising and eating fresh, local and organic foods. Reduce your stress with yoga or meditation. Give back to the community through volunteering. You’ve been given the chance for a fresh start – take advantage of it, and look forward to the brighter days to come!
Listen below and every Tuesday am at 8:30 to Win Damon and I as we chat about these tips on FM 106.1 WNBP in Newburyport, MA and WNBP.com

Stu Steinberg of Eaglerock Financial, Inc. has worked with families and businesses for more than 20 years, helping them work toward their financial goals through a holistic, well-rounded approach rooted in objectivity, education, and empowerment. Stu is highly regarded by clients and colleagues for his unique combination of investment, CPA and entrepreneurial experience in the high net worth market.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
Advisory services offered through LPL Financial, A registered investment advisor