Family Issues

When you get divorced or married and your name changes, your Social Security number will not have to be changed.
You should have your name changed on your Social Security account to reduce any chance of problems in the future. Changing the name on the account will require a trip to your local Social Security office, where you must fill out a "change of name" form.
You will need either a copy of your marriage certificate, divorce document or other legal proof of the name change. A new card will be mailed to you within two to three weeks. It will include your new name with your same Social Security number.

Some documents you should consider updating are: insurance policy's designation of new beneficiaries; Updating your will; Updating your power of attorney and health-care designation documents; and updating a list of whom you want to name as heirs and what you want them to inherit.
You should also decide who will handle your affairs upon your death. Speak to your local CPA about your divorce situation.

You or your spouse may want to formulate and sign a premarital agreement, sometimes called a prenuptial agreement. Generally, premarital agreements define each of the partner's separate properties that are brought into the marriage and describe the financial ownership intentions after the wedding. Premarital agreements are usually done among previously married partners who want to avoid a repeat of a financially bitter divorce. Premarital agreements may contain a limitation or waiver of alimony when and if you ever divorce. It may include a provision under which one spouse gives up all rights or limits their rights to the other's estate. Premarital agreements are advisable if one partner is much wealthier than the other and is concerned with the protection of assets should the marriage dissolve. If a divorce occurs later, the agreement usually states that a transfer, or the promise of a transfer, of a stipulated amount of property from the wealthier spouse to the other. The transfer may either be outright, or in a trust in exchange for a release of all claims the other may have for support or against the transferor's estate. You should also consider signing a prenuptial agreement if you or your future spouse have children from a previous marriage and are concerned about protecting the children's financial interest in your estate. The agreements are also commonly used if one of the two are involved in a business.

You should notify all credit reporting agencies and credit card companies about your new, unmarried status.
You should notify the credit bureaus of both your and your ex-spouse's new names and social security numbers, addresses and specify that those accounts need to be reported separately.
If you do not, transactions may be reported on the wrong spouse's account. This will help limit your liability and make you resposible for only your future obligations.

It is recommended that you contact the IRS when you get a divorce or legal separation in order to establish financial independence going into the future, especially if prior returns were filed as married filing jointly.

Generally, if you have a 401(k) retirement account and get divorced, your spouse will probably be entitled to a share of the money. The money that accumulates in a retirement account during marriage is considered a marital asset. Marital assets are divided between the divorcing spouses. The formula for dividing marital assets depends partly on the laws of the state in which you live and partly on your specific circumstances. In community property states, marital assets in general are split 50-50. Currently, the community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In equitable distribution states, marital assets are divided equitably. The ultimate decision of what is fair is made by the court in your state. Generally, the court determines how much of your 401(k)retirement plan is a marital asset by dividing the number of years you have been married by the number of years you have been a plan member.

Community property is property acquired after marriage in the states that follow the community property laws. These states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
The basis of the law is that both spouses form a partnership, and all property acquired during the marriage by the labor or skill of either spouse belongs to both spouses.

Generally, if you and your future spouse are both income earners and earn about the same income, you will probably save money by marrying after the first of the tax year. If one of you earns much more than the other, it is generally better to get married before the end of the year so you can file a joint tax return. Speak to your local CPA for details about this strategy.

If you are receiving survivor Social Security benefits because your spouse has died, you will not lose the survivor benefits if you remarry as long as you are age 60 or older.
If you remarry, you might see your monthly Social Security check increase because you may qualify for higher benefits based on your New spouse's earnings history.
You have an option to choose the higher of the two amounts. If you have children who are also receiving benefits, their status will be unaffected by your remarriage.