The Debits and Credits of Divorce

The financial aspects of a divorce can play out differently for every divorcing couple.  At a time of high emotion you may want to protect yourself, financially by making some prudent choices.  Your bank ~ you want to make sure that they know about your situation.  Any money held in joint accounts likely only needs one signature to withdraw so you want to ensure you take your half out and place it in an account in your name only.  Ensure the bank also puts a hold on any credit cards that you jointly share.  Those country songs about seeking revenge and making the other spouse pay through reckless credit card spending came from somewhere.  You want to make sure that it doesn't happen to you.  Remember, you are still jointly responsible for that debt.  That means that even if your spouse is not paying the monthly payments on those credit cards...you should.  Any repayment can, hopefully, be settled through the separation agreement as part of the negotiation.  It's better to do it that way than end up alone with bad credit.  Another good exercise would be to close any credit cards you don't need. 


Remember those investment accounts, especially the registered ones?  Registered Retirement Savings Plans and Registered Pension Plans (as well as Tax-Free Savings Accounts) often ask for the account holder to determine a beneficiary.  If you chose your spouse you may want to contact the financial institution managing these accounts to change your beneficiary.  


Now that you have looked after the registered savings what about the regular savings investment s that you have?   Those assets and their distribution are covered in your Will so you will want to re-write that too. 


Your not finished yet....while you are re-writing your Will  you may want to consider re-writing your Powers of Attorney (PA).  Your PA covers both medical and financial matters should you become incapacitated. The last thing you want is your spouse to be calling the shots with the doctor as to your care, if you can't speak for yourself!!!  

Jewelery ~ From an Estate Planning Point of View

One of my clients is aging.  OK, we are all aging but she is aging to a point where she wants to be responsible for what happens after she leaves us.  Her name is Edith.  Edith has accumulated many things during her tenure, here, on Earth, and she has given much thought as to who she would like to see get which trinket or object of perceived value.  To her beneficiaries the value may be extrinsic as it will always produce a fond memory of Edith, herself, but does the object have any intrinsic value?  How can Edith divide her wares on an even basis to her beneficiaries from an Earthly value perspective?

This weekend I was in a business coaching session and I happened to be sitting next to a woman who would provide a perfect resolve for Edith's dilemma.  Barbara is her name and Barbara's specialty is to value vintage jewelery.  I thought of Edith right away.  What a perfect solution to have such an expert peer through Edith's jewelery collection and make note of any hidden gems?!

Personal Effects Memorandum's are often attached to Wills.  They are not legally binding but they do disclose a 'wish' on the part of the deceased to have certain items go to particular people.  With full knowledge of her hidden gems and their approximate value Edith could write her own Personal Effects Memorandum and also ensure she is being fair about the value of her gift far beyond the memory of Edith, herself.

If you are interested in getting in touch with Barbara about her specialty, please let me know I will put you in touch!

Happy Planning.