Your divorce is finally done, dusted and stamped by the courts. You would think the work is over and you can file away your paperwork and be done, but thinking this is actually one of the biggest mistakes made in divorce. It is now time to execute on your settlement agreement terms and establish yourself as a single person once again. Here is a list of things to help you create your own Post-Divorce Checklist:
- Documentation: You will want to have the following documents on hand to do many of the things included here:
- Certified copy of your divorce decree
- Signed copy of your marital settlement agreement
- Assets: Scan through your settlement agreement and make a list of assets that need to be:
- Split
- Transferred
- Re-financed
- Re-titled
- Beneficiaries changed
- Closed/Opened
Put the date any of the above needs to be done by and calendar reminders to track progress on making these things happen. Here is a list of assets typically impacted to look for in your agreement:
- Bank accounts
- Retirement accounts
- House(s)
- Auto(s)
- Brokerage Accounts
- Life insurance policies
- 529 plans
- Social Security
- Debts:
- Credit Cards: Cancel any joint credit cards or cards issued in your spouse’s name from your credit card accounts. Ideally, you should do this at your date of separation but if you have not contacted the credit card company to freeze any accounts with joint debts remaining that are continuing to be paid off post-divorce do so now.
- Mortgage: This will need to be looked at specifically for your case. Is there a time requirement to refinance or sell a home? Contact a divorce mortgage expert to support you in this transaction. They can be an invaluable resource during your divorce as well to ensure that your settlement agreement and financial reality are aligned with how the home or other real property is proposing to be settled.
- Establish your financial team: You should assess your need for the following people and when doing this look for people with experience working with divorced clients because they will be in a better position to advise you:
- CPA for taxes
- Financial planner for retirement and brokerage account management
- Insurance broker
- Estate planning attorney
- Insurance:
- Health insurance: Call a health insurance broker prior to your decree being stamped if possible so you are ready to activate it when your divorce is final.
- Home insurance: Re-evaluate what your home insurance needs are post-divorce and update if necessary. If you are keeping the home you will want to remove your ex-spouse from the insurance policy as soon as the asset is completely in your name otherwise they could benefit from something catastrophic occurring to your property.
- Auto insurance: Re-evaluate your auto insurance needs and coverage required.
- Life insurance: Are new policies needed for child and spousal support collateral? Do you need to update the beneficiaries, change the policyholder or payment method?
- Other insurance: Consult with an insurance specialist to understand any other insurance needs you may have (e.g. long-term health, disability, renters, etc.)
- Estate Plan:
- Dissolve your family trust
- Update your will and create a new trust representing your post-divorce wishes
- Update your Healthcare directive and power of attorney documents
- Develop a post-divorce budget: Now that you are hopefully in a more stable place without divorce attorney fees coming in regularly it is time to revisit your budget and update it to your current reality. Set savings goals and re-visit budget versus actual spending regularly fine-tuning your habits and the plan as life evolves.
For more thoughts on things to add to your Post-Divorce Checklist download our “25 Things To Do Post-Divorce” pdf.
