Post-Divorce Checklist

Resolving your divorce marks the end of a difficult season in your life.   This is a great time to review your financial goals and develop a game plan to ensure your future security and success.  Here are also a few things to consider:

1. Review the judgment with your attorney and determine what legal documents you will need to conclude the case.  These might include: Qualified Domestic Relations Orders (required for dividing some retirement plans), Quit Claim Deeds for real estate transfers or an Order to Withhold Support.

2. Close any joint bank accounts that you have.  You may need to visit the bank and complete specific forms or put your requests in writing to close accounts or remove your ex-spouse as a signer on your accounts.

3. Determine what you are going to do for health insurance.  If you have insurance available through your ex-spouse via a COBRA policy, contact your spouse's employer’s human resources department to evaluate the policy and its costs.

4. Decide how to handle debts and existing credit cards even if the current balance is zero.  Close any joint accounts. Usually you can call the credit card company and have your account closed.  If there is an existing balance, see if you can freeze any future activity. You may have to submit a new application for credit in your name only.  Review your credit report to be sure all your marital obligations are resolved and you haven’t overlooked any accounts.

5. Find your own team of professionals to help you in building your new life:

• An estate attorney to help you in preparing a new will, power of attorneys, or establishment of trusts for your children.
• An accountant to help you determine an adequate plan for tax payments; especially if you are receiving maintenance that you will need to pay taxes on.  You may have to file quarterly tax payments to avoid underpayment penalties of your tax liability.
• A financial planner to help you establish a new budget for your lifestyle and develop a financial plan for your future financial needs.  It’s especially helpful to have a projection that details when support payments will change or end.
• An Insurance Agent to help evaluate your insurance needs and change beneficiaries where appropriate.

6. Splurge on one thing you’ve wanted that you couldn’t or wouldn’t do when you were married. Then, enjoy the freedom of doing so!

These are important “to dos” for moving on after divorce.   To ensure a positive financial future take ownership of your situation and be realistic.  When you do so, you can move forward with great confidence and peace of mind.