I am sure it is with mixed emotions that your divorce is final. While you need to start moving towards your new life, there are still some lingering things that you will need to complete. The following are some of the key actions you should consider taking on once your divorce is complete.
- Change your beneficiaries. Retirement accounts and Life insurance policies need to be updated. If you die, most people do NOT want those assets going to their ex-spouse.
- Open new savings and investment accounts. If your divorce settlement split assets, you will both need to establish your own accounts. If Retirement accounts are being split, this distribution will be created by filing the Qualified Domestic Relations Order (QDRO) that was created during the divorce.
- Get life insurance. If you are receiving maintenance from your spouse, you should get life insurance on those benefits in case he/she dies. In some cases, an existing policy can be used for this, but the beneficiary spouse needs to receive the mailings on this account to make sure it is not cancelled, or the beneficiary changed.
- Create a budget. At least initially, you will want to make sure your spending is in line with your income available. This does not have to be too complicated, but you need to understand where your money is going.
- Remember to get your post settlement assets and income. A challenging process is to keep track of post- divorce settlement transfers typically related to executive compensation. Often times, transfers related to stock options and bonus payouts will happen over several years post- divorce. Because you will still have to interact with your ex on these issues, it may be worth it to have a financial professional be your support person. Since these also have tax implications, it will be important to work with a CPA or financial professional who understands how these work.
Call us if we can assist you with your financial questions post-divorce.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual, nor intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. There is no assurance that the techniques and strategies discussed are suitable for all individuals or will yield positive outcomes.