Written by JSCLG Member Debra Fournier, Certified Financial Planner®, Certified Divorce Financial Analyst™

Wow! What a response to my last article. I have come to realize that more people than not are unprepared when it comes to divorce. Mental health professionals I have spoken to say that divorcing a spouse can sometimes be more emotional than losing a spouse to death. Emotions often cloud your decision making which can lead to poor choices when it comes to finances.

Making changes to a property settlement agreement is almost impossible. There must be hard proof based on fraud, deceit or a major mistake. In other words, get it right the first time. With that said, I have met with too many individuals who were not clear on the financial outcome of their divorce.

Request a credit check. I recently met with a client who was unaware of a significant home equity loan balance on the marital home. The couple opened a line of credit during the marriage for emergency reasons. When reviewing the tax returns, I noticed a deduction for mortgage interest (the home had been paid off a few years earlier). By doing a credit check on herself, she would have seen the outstanding balance. By the time she found out, they were already negotiating the settlement. After selling the home and paying off the debt, both walked away with much less than anticipated. Go to www.annualcreditreport.com, a site set up by the big three credit reporting agencies in the U.S. to furnish free annual credit reports, as required by federal law.

Did you know that if you were covered for health insurance under your ex-spouses employer’s plan, you may qualify to continue your coverage for up to 36 months under COBRA? One caveat—it’s not automatic. You need to contact the employer within 60 days of the divorce and complete the necessary paperwork.

Social Security: Did you know that you may be entitled to half of your ex-spouses social security benefits? You are entitled to a divorced spouse’s insurance benefits on the worker’s Social Security record if:
• The worker is entitled to retirement or disability insurance benefits;
• You have filed an application for divorced spouse’s benefits;
• You are not entitled to a retirement or disability insurance benefit based on a primary insurance amount which equals or exceeds one-half the worker’s primary insurance amount;
• You are age 62 or over;
• You are not married; and
• You were married to the worker for at least 10 years before the date the divorce became final.

If you would like more information, visit the IRS website at ssa.gov. For information about potential benefits on someone else’s record, you need to call or visit a local social security office.


Debra Fournier is not an attorney and does not provide legal advice. All information is financial in nature and should not be construed or relied upon as legal advice. Individuals seeking legal advice should solicit the counsel of competent legal professionals knowledgeable about the divorce laws in their geographical areas. Securities offered through LPL Financial Member FINRA/SIPC.