Finalizing a divorce may bring closure to one chapter of your life, but before you can move forward, there is still a long list of items to handle. After months or years of hashing out your finances with your spouse, including dividing assets and determining support, there is a whole new group of concerns and tasks. Your financial circumstances and legal rights and obligations have changed, and you need to organize and update your affairs to reflect this. Putting together a post-divorce checklist is the first step.
Estate Planning
Whether or not you had an estate plan while you were married, you should have one post-divorce. Your will and trust, if you have one, should reflect your current wishes, including any changes in heirs, trustees, executors, and guardians. You may also need to choose a new agent for your power of attorney if you named your spouse to manage your finances if you became incapacitated. Healthcare directives and related documents should be updated as well, such as your healthcare proxy, living will, emergency contacts, and HIPAA consent forms.
New beneficiary designation forms should be completed as needed for retirement accounts (401(k), IRA, pension), life insurance policies, and investment and bank accounts that are payable-on-death (POD) or transfer-on-death (TOD). This is important as these forms override the terms of your will.
Financial Accounts
Your divorce settlement may indicate who gets what, but you still need to take action to close all joint checking, savings, and credit card accounts and open new ones in your name only. If there are balances on any credit cards, make sure those are paid off. You should also change your passwords and remove your spouse as an authorized user on any of your personal accounts. Monitor your credit report for errors or leftover joint activity to ensure your credit isn’t affected.
Joint Property
If the divorce specified that property be transferred to one spouse, titles, then deeds, vehicle registrations, and property insurance must be updated to reflect that. If money is owed on the property (car loan, mortgage, etc.), it should be paid off before retitling.
Account and billing information should be put into the name of the new homeowner for utilities and other services (e.g., internet, phone, streaming, etc.).
If you’re moving, you’ll need to file a change of address with the post office to have your mail forwarded, change your driver’s license and other documents, and notify your employer, service providers, banks, and other relevant parties.
Insurance Policies
You should reevaluate your home, vehicle, life, disability, and property insurance and make changes as needed to the named insured, address, terms, coverage limits, and beneficiaries. Note that you or your spouse may be required to carry insurance as part of the divorce decree.
Personal Documents
If you are changing your name or address, you must update your driver’s license, social security card, passport, and other documents.
Taxes
Post-divorce, you should adjust your withholdings to reflect your new filing status. Consult a tax professional to understand how your taxes may be affected by alimony, child support, and changes in income. Also, make sure to keep copies of several years of tax returns filed while you were married in case of an audit.
Employer
Notify your employer of your divorce and any name or address changes and update any necessary documents, such as those related to employee benefits, withholdings from your paycheck, and emergency contacts.
Child-Related Matters
Notify your child’s school about address changes, custody and visitation terms, emergency contacts, consent forms, and other relevant information. Set up automatic payments/deposits for child support and keep records in case of disputes.
Personal Finances
Divorce can have a substantial impact on your finances. This is particularly true if you have children, have never handled day-to-day finances, or you’re an older adult in or approaching retirement. You should reassess your financial situation and budget for your new reality.
Financial experts can help with different aspects of this. A daily money manager can assist you in creating a new budget, monitoring your income and expenses, addressing debts, paying bills, and gathering and keeping records. Tax professionals can provide advice on tax planning, while financial planners can develop a comprehensive plan to meet your longer-term goals. A lawyer can answer questions about your divorce settlement and estate planning considerations.
These tasks may feel overwhelming, and depending on your circumstances, there may be other ones on your checklist. The key is to write them down, so you have a document to organize and guide you. You should also consider asking for help.
If you feel anxious or lack the time or comfort level with handling these tasks, contact me for a free consultation. I have assisted many divorced individuals navigate these responsibilities and get back on track with their new lives.
