Divorced: Now What Do I Do?

At the end of the divorce process, many couples experience having lost more than they gained, both emotionally and monetarily, and they’re just relieved the process is over. The unfortunate reality, however, is that there is still more to do.

Even after your divorce is final, there are areas in finance, property ownership and personal protection that require your attention. These details ensure the agreed upon settlement is fully completed and as effective as intended. 

Your financial future may not be adequately safeguarded, and you could be confronted with unintended consequences in the years to come if you don’t carefully review the financial details and follow through with the necessary steps to confirm their implementation. You do not want to learn later that it’s necessary to revisit your attorney, go back to mediation, or worse - back to court, to resolve these matters, all of which entail more money, more time and more stress.

Here are a few areas for your review and attention in post-divorce life:

Retitling of assets: Retitle or transfer the title of all assets titled jointly, such as the home, car and boat. If necessary, or as directed in the divorce decree, begin the process of refinancing each asset solely in the new titleholder’s name. 

Joint Accounts: Remove your former spouse from and/or close joint accounts including checking, savings and credit cards.  If you still hold joint credit cards, you will be responsible for any balances and debts incurred that are not paid off or paid on time. That debt will be listed on your credit report.

Transfers: Confirm that the cash and investment accounts and their proper values have been or are in the process of transferring into your new account. If the account is a retirement plan (401K, 403B, pension), ensure that the Qualified Domestic Relations Order (QDRO) has been submitted to the plan administrator and processed to completion. Verify the correct monetary amount or percentage of the account has been received.

Notify Your Employer: Change your status at your employer, and update your tax filing status, all the benefit listings, and the listed beneficiaries.

Beneficiaries: Review your will, estate plans, retirement plans, and insurance policies, and change the designated beneficiaries where necessary. If you don’t update this information, these assets could be received by an unintended person such as your ex-spouse.

Revoke any Power of Attorney: If you have any type of power of attorney, have it revoked in writing and recreated, so you don’t find yourself in a situation where your former spouse is responsible for your medical care or legal needs. If the power of attorney is recorded, a proper revocation should be recorded, as well.

Insurance: Obtain new insurance for your possessions that have been retitled solely in your name. Also, if using the COBRA health insurance provision at your ex-spouse’s employer or obtaining new health insurance, do not allow your health insurance to lapse. Within 60 days of your divorce being finalized, take COBRA coverage or get new health insurance through your employer or on the open marketplace.

Review Budget and Retirement Goals:  It is inherently more expensive to live single than as a couple. Plan for the added expenses by creating a monthly budget. Also, review your retirement targets and goals, and adjust your investment strategy if needed.  

You are on your way toward a new post-divorce updated life, but by not addressing these issues, you may discover there are situations that still bind you and your ex-spouse together financially, now, and potentially in the future.

Post-divorce life is a new beginning, and properly addressing your new financial situation can provide for a smoother, less challenging transition.  If you need clarification or are unsure how to address these issues, The Bales Law Firm can be of assistance to ease the transition into your new post-divorce life.