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Marriage And Divorce
• Will. Update your will and power of attorney if you have them. If you do not, hire a lawyer to draw them up for you.
• Life insurance. Review your life insurance coverage. Given the recent events in your life, you may want to change your beneficiary and the amount of your coverage.
• Retirement plans. Review the beneficiaries you have named for your 401(k) and IRA plans. Make any changes that are appropriate given your new circumstances. If you're getting married, review your combined contributions to 401(k) plans to make sure you're maximizing both employers' matching contributions.
• Withholding. Adjust your Form W-4 (income tax withholding form) for your change in marital status and any change in the number of your dependents. If you're getting married and both you and your spouse work, check to see if you will be affected by the marriage penalty. If so, you may need to adjust our payroll withholding.
• Name and address change. Notify the Social Security Administration if you change your name. If you move, notify the IRS of your address change.
• Health insurance. Analyze your health insurance options. If you are getting married, you may be able to save money by joining your spouse's plan or by having your spouse join your plan. If you are divorcing or have lost a spouse and have relied on him or her for health insurance, you should investigate the COBRA laws, which may allow you to retain your insurance coverage for up to 18 months.
• Disability insurance. Consider purchasing disability insurance if someone will be dependent on you for financial support.
• Auto insurance. Talk to your automobile insurance agent. If you are getting married, you may save money by combining separate policies. You may also qualify for a marriage discount.
• Prenup. Consider a prenuptial agreement if you're getting married and you have children from a previous marriage or have substantial assets.
Getting your affairs in order after a change in marital status is an important step toward financial well-being. For any assistance you need, contact our office. We can help you sort through your options and find the right choices for our new situation.
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