Printer Friendly
Text Size: A A A A

How can I re-build my finances?

Starting over comes with more anxiety and fewer wide-open choices. But there are steps you can take to create a solid foundation to build your life on again. Knowing what those steps are makes the whole process manageable.

Perhaps you’re recently divorced or widowed. Maybe you just landed a job after a long period of unemployment or you recently completed bankruptcy proceedings. Each of these life events presents a common challenge: the need to re-establish yourself financially. The following steps can help get you back on sound financial footing.

Prepare a net worth statement. A net worth statement is a basic financial-management tool used to make financial decisions and to measure progress. To determine your family’s financial net worth, add all your assets including: balances in any bank, investment, or retirement savings accounts; the value of your home and its furnishings; any real estate or automobiles you own; and personal property such as jewelry and antiques. Next, identify your liabilities. These might include outstanding balances on your mortgage and home equity loans, credit cards, automobile loans, student loans and other obligations. Subtract your liabilities from your assets to arrive at your family’s net worth. You should calculate your net worth once a year to identify significant changes.

Create a budget. Identify sources of income, including your salary, social security or pension benefits, child support or alimony, and interest and dividends on your savings and investments. Next, list all your fixed and flexible expenses.

Fixed expenses are the same every month. These include rent or mortgage payments, credit card payments, insurance premiums, and utility payments. Flexible expenses, like food, gifts, dining out and recreation can be reduced or eliminated by tightening your belt. If your expenses exceed your income, you need to change one or both. Consider cutting some discretionary spending, taking on a second job, or moving to a less expensive area.

Open bank accounts in your name alone. Open your own savings and checking accounts. This is particularly important if you are heading toward a separation or divorce. Having your own account will eliminate the possibility of your spouse writing bad checks or otherwise misusing the account. It is also a vital first step in achieving financial independence.

Pay all your bills on time. Regardless of what is going on in your personal life, it is important that you pay your bills on time and balance your checkbook carefully. If you excessively bounce checks and pay finance charges, this may be reflected in your credit report.

Review your credit report It’s important that you monitor your credit report regularly for errors. Order a copy of your credit report from all three of the major credit bureaus: Equifax, (800) 685-1111; Experian (formerly TRW), (888) EXPERIAN (397-3742); and Trans Union, (800) 916-8800.

If your report contains information you believe is incorrect, contact the bureau and request they investigate the error. If the dispute cannot be resolved, you have the right to submit a 100-word statement that tells your side of the story.

Get a credit card. The best way to establish good credit is to get a credit card. Depending on your credit history, this may or may not be an easy task. A secured credit card is an excellent way for someone with bad credit to build a good rating. With a secured card, you give the bank or credit-card company a deposit and your card has a credit limit for the same amount. To establish a good credit history, you need to use the card and pay off the debt on a timely basis.

CPAs suggest that you only charge what you can afford to pay back at the end of the month. A good strategy is to use credit for a specific purpose, such as buying gas for your car. After using the secured card and paying your bill regularly for a year, try to negotiate with the company for an unsecured card.

Establish an emergency fund. Setting up an emergency fund is the best way to prepare for any future financial setbacks. Consider the amount of money you need to pay your bills for housing, food, insurance, medical care and other necessities for six months to a year. Then work at setting aside small amounts each month until you have an emergency fund equal to the amount you would need to cover six months to a year’s worth of living expenses. Resist the urge to tap into this money unless you are facing a real financial crisis.

Get good financial advice. Rebuilding your financial life requires planning, hard work and discipline. If you can’t seem to manage on your own, enlist the help of nonprofit credit counseling services to implement your new budget and help you work with creditors to create a realistic repayment plan.

What do I need to know about my credit report?

It’s likely you have a credit history that will affect your purchasing power so you need to know what your plastic has been revealing about your eligibility for future credit and loans.

Your credit report contains information about your past and present credit transactions. It’s used primarily by potential lenders to evaluate your credit worthiness. So, if you are about to apply for credit, especially for something significant like a mortgage, you’ll want to get and review a copy of your credit report.

There are three major credit-reporting agencies or credit bureaus: Experian, Equifax, and Trans Union. To make sure your credit record is correct and consistent, you should get a copy of your report from all three. You may do so by writing them, calling them or contacting them through their websites.

If you have to pay for the reports, the cost will typically be $9 or less. In some cases, however, the reports won't cost you anything. You can get a free copy of your credit report once a year from each agency if:

  • You live in Colorado, Georgia, Maryland, Massachusetts, New Jersey or Vermont
  • You're receiving public assistance
  • You're unemployed and planning to apply for a job within 60 days
  • You believe that your file contains errors due to fraud

In addition, you're entitled to a free report if you've been denied credit within the last 60 days based on information in the report. The lender who turned you down must give you the name and address of the credit bureau that issued the report.








Under federal and some state laws, you have a right to dispute incorrect or misleading information on your credit report. Typically, you'll receive with your report either a form to complete or a telephone number to call about the information that you wish to dispute. Once the credit bureau receives your request, it generally has 30 days to complete an investigation, checking any item you dispute with the party that submitted it. One of four things should then happen:

  • The credit bureau investigates, the party submitting the information agrees it's incorrect, and the information is corrected
  • The credit bureau investigates, the party submitting the information maintains it's correct, and your credit report goes unchanged
  • The credit bureau doesn't investigate, and so the disputed information must be removed from your report
  • The credit bureau investigates, but the party submitting the information doesn't respond, and so the disputed information must be removed from your report

You should be provided with a report on the investigation within five days of its conclusion. If the investigation resulted in a change to your credit report, you should also get an updated copy.


Who should work with a financial advisor?

In the not-so-distant past, one spouse could support a family, paying for college didn’t require taking out a second mortgage, people could look forward to retiring on Social Security and possibly a company pension and women typically weren’t raising families on their own.



  • Set financial goals
  • Monitor your plan and periodically evaluate its progress







When it comes to compensation, advisors fall into four categories:

  • Salary based—You pay the company for which the advisor works, and the company pays its advisors a salary
  • Commission based—The advisor receives a commission from a third party for any products you may purchase
  • Commission and fee based—The advisor receives both commissions and fees



  • Getting married or divorced
  • Having a baby or adopting a child
  • Paying for your child's college education
  • Buying or selling a family business
  • Changing jobs or careers
  • Planning for your retirement
  • Developing an estate plan
  • Coping with the death of your spouse
  • Receiving an inheritance or a financial windfall



How can I get an estimate of my social security benefits?

The Social Security Administration mails earnings and benefit estimate statements, known as the Social Security Statement, to all workers age 25 and older who are not already receiving monthly Social Security benefits.

You can expect to receive your statement each year about three months before your birth month. It provides estimates of the Social Security retirement, disability, and survivor's benefits that you and your family could be eligible to receive now and in the future.

You should read the report carefully and confirm the information, especially the years you have worked and paid Social Security taxes. If you don't want to wait until your birthday, you can get an estimate of your Social Security benefits by obtaining a Personal Earnings and Benefit Estimate Statement from the Social Security Administration. To obtain this statement, call (800) 772-1213 or visit the Social Security website at www.ssa.gov.


Many financial professionals suggest you put away three to six months worth of your salary. If you lose your job, or become disabled and don't have adequate disability insurance, you'll need that money to pay your regular monthly expenses, such as mortgage payments, insurance premiums, groceries, and car payments, until you can find another job.

Without such an emergency fund, a period of unemployment could put your assets at risk. Similarly, if your car breaks down or your spouse has a medical emergency, you'll want to have the necessary cash to pay the bills.


Finally, keep your emergency fund separate from your everyday accounts. You might even want to use a different bank. Unless you are extremely disciplined, you'll be tempted to spend those extra funds if you keep them in your checking account. Remember, if you can put off an expense until next week, it is probably not an emergency.

What should I do with my 401(k) plan when I change jobs?

Job mobility is the buzzword for the 21st century. Skills and self-confidence are better predictors of continued employment than loyalty to a firm or even a profession. The odds are overwhelming that you will change jobs and even careers not once but several times throughout the course of your working life. Safeguarding your retirement income during job changes should be part of your career planning.

When you change jobs, you need to decide what to do with the money in your 401(k) plan. Should you leave it where it is, or take it with you? Should you roll the money over into an IRA or into your new employer's retirement plan?

As you consider your options, keep in mind that one of the greatest advantages of a 401(k) plan is that it allows you to save for retirement on a tax-deferred basis. When changing jobs, it's essential to preserve the continued tax-deferred growth of these retirement funds, and to avoid current taxes and penalties that can eat into the amount of money you've saved.

When you leave your current employer, you can withdraw your 401(k) funds in a lump sum. To do this, simply instruct your 401(k) plan administrator to cut you a check. Then you're free to do whatever you please with those funds. You can use them to meet expenses (e.g., medical bills, college tuition), put them toward a large purchase (e.g., a home or car), or invest them elsewhere.

While cashing out is certainly tempting, it's almost never a good idea. Taking a lump sum distribution from your 401(k) can significantly reduce your retirement savings, and is generally not advisable unless you urgently need money and have no other alternatives. Not only will you miss out on the continued tax-deferred growth of your 401(k) funds, but you'll also face an immediate tax bite.

First, you'll have to pay federal (and possibly state) income tax on the money you withdraw. If the amount is large enough, you could even be pushed into a higher tax bracket for the year. If you're under age 59½, you'll generally have to pay a 10 percent premature distribution penalty tax in addition to regular income tax, unless you qualify for an exception. (For instance, you're generally exempt from this penalty if you're 55 or older when you leave your job.) And, because your employer is also required to withhold 20 percent of your distribution for federal taxes, the amount of cash you get may be significantly less than you expect.

Note: Because lump-sum distributions from 401(k) plans involve complex tax issues, especially for individuals born before 1936, consult a tax professional for more information.

One option when you change jobs is simply to leave the funds in your old employer's 401(k) plan where they will continue to grow tax deferred.

However, you may not always have this opportunity. If your vested 401(k) balance is $5,000 or less, your employer can require you to take your money out of the plan when you leave the company. (Your vested 401(k) balance consists of anything you've contributed to the plan, as well as any employer contributions you have the right to receive.)

Leaving your money in your old employer's 401(k) plan may be a good idea if you're happy with the investment alternatives offered or you need time to explore other options. You may also want to leave the funds where they are temporarily if your new employer offers a 401(k) plan but requires new employees to work for the company for a certain length of time before allowing them to participate. When the waiting period is up, you can have the plan administrator of your old employer's 401(k) transfer your funds to your new employer's 401(k) (assuming the new plan accepts rollover contributions).

Just as you can always withdraw the funds from your 401(k) when you leave your job, you can always roll over your 401(k) funds to your new employer's retirement plan if the plan allows it. You can also roll over your funds to a traditional IRA. You can either transfer the funds to a traditional IRA that you already have, or open a new IRA to receive the funds. There's no dollar limit on how much 401(k) money you can transfer to an IRA.

Generally, the best way to roll over funds is to have your 401(k) plan directly transfer your funds to your new employer's retirement plan or to an IRA you've established. A direct rollover is simply a transfer of assets from the trustee or custodian of one retirement savings plan to the trustee or custodian of another (a "trustee-to-trustee transfer"). It's a seamless process that allows your retirement savings to grow tax deferred without interruption. Once you fill out the necessary paperwork, your 401(k) funds move directly to your new employer's retirement plan or to your IRA; the money never passes through your hands. And, if you directly roll over your 401(k) funds following federal rollover rules, no federal income tax will be withheld.

Note: In some cases, your old plan may mail you a check made payable to the trustee or custodian of your employer-sponsored retirement plan or IRA. If that happens, don't be concerned. This is still considered to be a direct rollover. Bring or mail the check to the institution acting as trustee or custodian of your retirement plan or IRA.

You can also roll over funds to an IRA or another employer-sponsored retirement plan (if that plan accepts rollover contributions) by having your 401(k) distribution check made out to you and depositing the funds to your new retirement savings vehicle yourself within 60 days. This is sometimes referred to as an indirect rollover.

However, think twice before choosing this option. Because you effectively have use of this money until you redeposit it, your 401(k) plan is required to withhold 20 percent for federal income taxes (you get credit for this withholding when you file your federal income tax return for the year). Unless you make up this 20 percent with out-of-pocket funds when you make your rollover deposit, the 20 percent withheld will be considered a taxable distribution, subject to regular income tax and generally a 10 percent premature distribution penalty (if you're under age 59½).

If you do choose to receive the funds through an indirect rollover, don't put off re-depositing the funds. If you don't make your rollover deposit within 60 days, the entire amount will be considered a taxable distribution.

Assuming your new employer offers a retirement plan that will accept rollover contributions, is it better to roll over your 401(k) funds to the new plan or to a traditional IRA?

Each retirement savings vehicle has advantages and disadvantages. Here are some points to consider:

  • A traditional IRA can offer almost unlimited investment options; a 401(k) plan limits you to the investment options offered by the plan
  • A traditional IRA offers easier access to retirement funds than a 401(k)
  • A traditional IRA can be converted to a Roth IRA if you qualify
  • A 401(k) offers the highest level of protection from creditors (the protection afforded to IRA funds depends on state law)
  • A 401(k) may allow you to borrow against the value of your account, depending on plan rules
  • A 401(k) offers more flexibility if you want to contribute to the plan in the future

Finally, no matter which option you choose, you may want to discuss your particular situation with a tax professional (as well as your plan administrator) before deciding what to do with the funds in your 401(k).

Can I receive unemployment benefits?

Knowing how unemployment benefits work can better prepare you for changes in the economy, downsizing or job loss for any reason. Whatever your situation, you should know whether you are eligible for benefits and how to access them.


  • You must be unemployed or working less than full time
  • You must meet certain income requirements
  • You must be ready, willing, and able to work
  • You must have involuntarily left your job

In general, you won't be eligible for benefits if:

  • You quit your job simply because you didn't like it
  • You're fired for committing a crime (e.g., stealing)
  • You've never worked before

For more information, contact your state's local employment office. You can also look in the state government section of your phone book under Unemployment Insurance, Unemployment Compensation, Employment Insurance, or Employment Service. Or, you can try searching the Internet using these same key terms.

In most states, unemployment compensation is financed by employer contributions through a payroll tax. In a few states, employees are also required to contribute a minimal amount to the fund.

Most states will allow you to apply for benefits:

  • In person
  • By telephone
  • By mail

When filling out the application, you'll be asked a lot of questions, so have the following information handy:

  • Your Social Security number
  • Your last employer's name, address, and phone number
  • Your last day of work and the reason you're no longer working
  • Your salary history
  • Your proof-of-citizenship status

Regardless of which state you live in, you'll receive a weekly unemployment benefit based on how long you were employed and your prior wages. The state will calculate your average weekly wage, and you will receive a percentage of that wage based on your state's formula. You can figure out your average weekly wage by adding up 12 months worth of pay stubs and dividing that number by 52. If you were salaried, just divide your annual salary by 52.


The answer to this question comes as a big surprise to many people. Yes, the unemployment compensation you receive is taxable. You must report this money as income. In some states, you can ask that taxes be withheld from your unemployment check. This could save you from a big tax bill at the end of the year. For more information, consult your tax advisor.

What are special unemployment compensation programs?

Workers in post-9/11 New York City and in Florida after the disastrous 2004 hurricane season could have been eligible for unemployment under special guidelines established by the U.S. government, even if they weren’t typically eligible for regular unemployment compensation. Special unemployment compensation requires a separate application and you should be aware of qualifying conditions that may afford you greater protection during loss of employment due to disasters.

If you've lost your job and fall into one of the following categories, you may be covered under a special unemployment compensation program:

  • Federal employees
  • Ex-service members, based on active duty service
  • Individuals who can no longer work as a result of a natural disaster, but who do not qualify for regular state or federal unemployment benefits

How can I take advantage of employer-sponsored retirement plans?

Don’t be one of the one-third of all adult Americans who have no savings for retirement. You can take positive steps to protect yourself and benefit from tax advantages, employer contributions and practically painless automatic payroll deductions.



  • Your employer automatically deducts your contributions from your paycheck. You never even miss the money--out of sight, out of mind.
  • You contribute to the plan on a pretax basis. Your contributions come off the top of your salary before your employer withholds income taxes.






For example, you earn $30,000 a year and work for an employer that has a matching 401(k) plan. The match is 50 cents on the dollar up to 6 percent of your salary. Each year, you contribute 6 percent of your salary ($1,800) to the plan and receive a matching contribution of $900 from your employer. That's an automatic, risk-free return of 50 percent on your investment!


Research the investments available to you. How have they performed over the long term? Have they held their own during down markets? How much risk will they expose you to? Which ones are best suited for long-term goals like retirement? You may also want to get advice from a financial planner. He or she can help you pick the right investments based on your personal goals, your attitude toward risk, how long you have until retirement, and other factors. Your planner can also help you coordinate your plan investments with your overall investment portfolio.




  • Leaving your funds in the old plan, growing tax deferred (your old plan may not permit this if your balance is less than $5,000). This may be a good idea if you're happy with the plan's investments or you need time to decide what to do with your money.



Sixty million Americans don’t qualify for pension benefits. A PBS report revealed that more than one woman in four lives in poverty because she depends on Social Security for her only retirement income. You can avoid running short in retirement, even if your employer doesn’t offer a pension plan or 401(k).

In many cases, your first step should be to open an IRA and contribute as much as you possibly can each year. Because of tax-deferred, compounded earnings, IRAs offer similar long-term growth opportunities as employer-sponsored plans. In addition, you may qualify for tax-deductible contributions or tax-free withdrawals, depending on whether you invest in a regular IRA or a Roth IRA.

Another tax-advantaged option to consider is annuities. Generally purchased with a life insurance company, a typical annuity features tax-deferred growth and provides either fixed or variable payments beginning at some future time (usually retirement). Depending on the type of annuity, you may have several options in how you ultimately take distributions.

Finally, don't forget about traditional investments (e.g., stocks, bonds, mutual funds). Most of these vehicles are taxable, but they can still help you save a bundle over the long term. The specific types of investments you select will depend on your risk tolerance, time horizons, liquidity needs, and goals for retirement. A financial planner can help you construct a portfolio that makes sense for you.

Can I borrow or withdraw money from my 401(k) plan?


To find out if you're allowed to borrow from your 401(k) plan and under what circumstances, check with your plan's administrator or read your summary plan description. Many employers allow 401(k) loans only in cases of financial hardship, but you may be able to borrow money to buy a car, to improve your home, or to use for other purposes.




Make sure you follow to the letter the repayment requirements for your loan. If you don't repay the loan as required, the money you borrowed will be considered a taxable distribution. If you're under age 59½, you'll owe a 10 percent federal penalty tax, as well as regular income tax on the outstanding loan balance.

  • The interest you pay on borrowed funds is generally credited to your own plan account; you pay interest to yourself, not to a bank or other lender

Disadvantages of borrowing money from your 401k include:

  • Loan payments are made with after-tax dollars.


  • To pay the medical expenses of you, your spouse, or your dependents
  • To pay costs related to the purchase of your principal residence
  • To pay a maximum of 12 months worth of tuition and related educational expenses for post-secondary education for you, your spouse, or your dependents
  • To make payments to prevent eviction from or foreclosure on your principal residence





What do I need to know about investment terms and concepts?

Self-education is one of the most important investment decisions you can make. When you understand how investing works, you can choose your own level of risk and set goals for return. Women have tended to be intimidated by the jargon of investing and to be unnecessarily cautious in their investment decisions. You can make your investments work harder for you once you become familiar with the terms and concepts.

Below are summaries of some basic principles you should understand when evaluating an investment opportunity or making an investment decision. Rest assured, this is not rocket science. In fact, you'll see that the most important principle on which to base your investment education is simply good common sense. You’ve decided to start investing. If you've had little or no experience, you're probably apprehensive about how to begin. Even after you've found a trusted financial advisor, it's wise to educate yourself, so you can evaluate his or her advice and ask good questions. The better you understand the advice you get, the more comfortable you will be with the course you've chosen.

Don't worry if you can't understand the experts in the financial media right away. Much of what they say is jargon that is actually less complicated than it sounds. You'll learn it. There is no reason to wait to invest until you know everything.












Understand the difference between investing for growth and investing for income.






To evaluate the "growth" approach, you'll need to appreciate the concept of compounding. Compounding is what happens when you "let your money ride." Unlike the income investor, who usually takes his or her money "off the table" as the checks arrive, the growth investor lets investment returns remain invested, thereby earning a "return on the returns."


What do I need to know about buying a home?

More than 60 percent of married couples under the age of 35 own their own homes. Buying a home can be stressful, especially when you’re buying one for the first time. Fortunately, knowing what to expect can make the whole process a lot easier.



If you're really serious about buying, however, you'll probably want to get pre-approved for a loan. Pre-approval is when the lender, after verifying your income and performing a credit check, lets you know exactly how much you can borrow. This involves completing an application, revealing your financial information, and paying a fee.



  • Help you determine your housing needs
  • Show you properties and neighborhoods in your price range
  • Suggest sources and techniques for financing
  • Prepare and present an offer to purchase
  • Act as an intermediary in negotiations
  • Provide insight into neighborhoods and market activity
  • Disclose positive and negative aspects of properties you're considering



  • Price of home and potential for appreciation
  • Location or neighborhood
  • Quality of construction, age, and condition of the property
  • Style of home and lot size
  • Number of bedrooms and bathrooms
  • Quality of local schools
  • Crime level of the area
  • Property taxes
  • Proximity to shopping, schools and work

Once you find a house, you'll want to make an offer. Most home sale offers and counter offers are made through an intermediary, such as a real estate agent. All terms and conditions of the offer, no matter how minute, should be put in writing to avoid future problems.







What are some popular types of mortgages?

Like homes themselves, mortgages come in many sizes and types. The type of mortgage that's right for you depends on many factors, such as your tolerance for risk and how long you expect to stay in your home. Here are some characteristics of various popular types of mortgages.

Conventional Fixed Rate Mortgages

  • Low risk
  • 10- to 40-year terms
  • Interest rate doesn't change
  • Large down payment (compared to government mortgages) may be required
  • Payment remains the same

Adjustable Rate Mortgages (ARMs)

  • Higher risk
  • Initial interest rate often lower than conventional fixed rate mortgage
  • Interest rate may go up or down
  • Interest rate usually adjusted annually
  • Rate adjustments may be limited by cap(s)
  • Payment caps can result in negative amortization in periods of rising interest rates

Government Mortgages

  • FHA, VA, or bond-backed
  • Interest rate sometimes lower than conventional fixed rate mortgage
  • Variety of programs available
  • Low down payment requirements
  • Liberal qualifying ratios
  • Attractive to first-time homebuyers
  • Higher insurance costs may apply for FHA loans
  • Payment remains the same

Hybrid Adjustable Rate Mortgages (ARMs)

  • Higher risk
  • Initial interest rate often lower than conventional fixed rate mortgage
  • Fixed term for 1-10 years, then becomes a 1-year ARM
  • May have option to convert to a fixed rate mortgage before becoming a 1-year ARM
  • Interest rate may go up or down
  • Rate adjustments may be limited by cap(s)

Jumbo Loans

  • Any loan over $359,650 (2005 figure, up from $333,700 in 2004) for a single-family home or condo
  • Size of loan increases lender's risk, so interest rates are generally higher than for conventional fixed rate mortgages
  • Jumbo loans are not available with government mortgages

How do I choose an entity for my new business?

Now that you’ve decided to start a new business or buy an existing one, you need to consider the form of business entity that’s right for you.

Basically, three separate categories of entities exist: partnerships, corporations and limited liability companies. Each category has its own advantages, disadvantages, and special rules. It is also possible to operate your business as a sole proprietorship without organizing as a separate business entity.















A corporation must satisfy several requirements to be eligible for treatment as an S corporation for federal income tax purposes. However, qualification as an S corporation offers a potential tax benefit unavailable to a C corporation. If a qualifying corporation elects to be treated as an S corporation for federal income tax purposes, then the income, gains, deductions and losses of the corporation are generally passed through to the shareholders. Thus, shareholders report the S corporation's income, gains, deductions and losses on their individual federal income tax returns, eliminating the potential for double taxation of corporate earnings in most circumstances.






I am getting a divorce. What are some things I need to consider?


There's no legal requirement that you hire an attorney when divorcing. In fact, going it alone may be a sensible option if you're young and have been married only a short time, are childless, and have few assets. However, most divorcing couples hire attorneys to better protect their interests, even though doing so can be expensive.

Divorce attorneys typically charge hourly rates and require you to submit retainers (lump sums) up front. It's not unusual, for example, for an attorney to charge as much as $150 to $200 per hour and require an initial retainer of up to $2,500 to $5,000. The fee depends on the complexity of the case, the reputation and experience of the divorce attorney, and your geographic location.





  • Each spouse's date of birth
  • Names and birthdates of children, if you have any
  • Existence of prenuptial agreement
  • Information about parties' prior marriages, children, etc.
  • Date of separation and grounds for divorce
  • Current occupation and name and address of employer for each spouse
  • Social Security number for each spouse
  • Income of each spouse
  • Education, degrees, and training of each spouse
  • Extent of employee benefits for each spouse
  • Details of retirement plans for each spouse
  • Joint assets of the parties
  • Liabilities and debts of each spouse
  • Life (and other) insurance of each spouse
  • Financial records
  • Family business records
  • Collections, artwork, and antiques



  • Whose health insurance plan should cover the children?

Keep the following tips in mind:

  • Do make sure all taxes have been paid to date.
  • Do review the contents of any safe-deposit boxes.
  • Do get emotional support for yourself—talk to friends, join a support group, or see a therapist.
  • Don't quit your job.
  • Don't move out of the house before consulting your attorney.
  • Don't transfer or give away assets that are owned jointly.

How will my spouse’s death affect my finances?
















