Your First Steps - I

One of the first steps you can take to avoid financial disaster is to establish your financial independence. The idea is not to create a split between you and your spouse or partner, but rather for you to have enough financial self-sufficiency that you can act on your own in an emergency. The following six steps will help you to accomplish that. 

1. Maintain files of basic financial information. Be sure you have copies of all current assets; bank account numbers; safe deposit information; insurance beneficiary information; IRAs and other retirement account records; tax returns going back seven years; mutual fund statements and copies of stocks and bonds; copies of health, homeowners, auto insurance policies; the lease or mortgage information for your home; copies of a prenuptial agreement; wills, trusts and powers of attorney; and copies of birth and marriage certificates. It is also a good idea to have receipts of major appliances in a file as well. 

2. Have your name on the checking account. If your husband dies suddenly, it could be very difficult to resume payment schedules if the checking account and home purchases are listed only in his name. If you are married, you should also open checking and savings accounts in your own name just in case a will is contested or some other complication arises.