The Post-Divorce Checklist – Securing Loose Ends

2022

The divorce process is daunting.

For many of our clients, the road to a 10-minute uncontested divorce hearing has been fraught with contentious and exhausting negotiations. So much so, that the final hearing and receipt of the final order can feel anti-climactic.

By the time they have that final order in hand, our clients are ready to close the door on this difficult chapter. But it is important to remember that there are often several “checklist” items to accomplish even after that final divorce hearing.

Read (and re-read) the Agreement

It is critical to read (and re-read) that agreement that you spent so much time negotiating. Many agreements obligate former spouses to transfer property or assets by a certain date in the future. Put that date on your calendar and nudge your former spouse or attorney if those deadlines aren’t met. This agreement is the roadmap for the next few days, weeks, months, and sometimes years.

Have Court Orders Dividing Retirement Assets Been Signed and Submitted?

Many agreements provide for a division of retirement assets amongst spouses. The division of qualified retirement accounts such as a 401(k) or a 403(b) or a TSP requires a court order. The court order is highly technical and should be prepared by an attorney. If you are the spouse set to receive certain retirement assets, engage counsel to prepare these orders promptly so that they may be submitted to the court for signature. If you neglect to have such an order signed by a judge or the order hasn’t been finalized and accepted by the retirement plan administrator, if your ex-spouse dies, the administrator of the plans will have no legal obligation other than to pay retirement funds in full to your ex-spouse, regardless of what your agreement states.

Update Your Beneficiary Designations

Remember to update your beneficiary designations! Even if you are the spouse who is obligated to transfer a portion of assets to your ex-spouse, you likely do not have an obligation to leave all of an asset to your ex-spouse upon your death. But if you do not update your beneficiary designations to remove your ex-spouse as the pay-on-death beneficiary of an asset, your divorce will not trump the beneficiary designation. The beneficiary designation will control. This holds true not only for retirement assets but also for those checking and savings accounts you access every day.

What Is Your Health Insurance Coverage?

If you were previously on your ex-spouse’s health insurance, you may have a right to elect continuation of coverage for a period, but this period will come to an end. More importantly, continuing coverage is often more expensive than an entirely new plan. Research in advance what plan you want and make arrangements to timely enroll in new coverage to avoid any gaps in coverage.

Did You Restore Your Former Name?

Many of our clients wish to be restored to their former name upon divorce. If your divorce decree includes a change of your name, you’ll need to request certified copies of the Court Order from the Court. You’ll need to send certified copies to all the entities with whom your new name should be shared and your name should be updated, including:

Social Security Administration
IRS (Form 8822)
U.S. Passport
State Driver’s License, vehicle title & registration
U.S. Postal Service
Voter registration
Banking institutions
Credit card institutions
Mortgage holders
Utility companies
Medical care providers
Health/life/home/auto insurance companies
Professional licenses
Investments
Clubs or associations
Employer
Frequent flyer & hotel point accounts

Time To Update Your Estate Planning

We recommend all our clients revisit their estate planning documents before, during, and/or after the divorce process has been finalized. If you are one of the many people who doesn’t have a will, this can be a great time to sit down with a professional and make a plan regarding who can act for you in the event of your illness or incapacity and who will inherit your assets upon your death. Prior to divorce, your plan likely included your ex-spouse throughout all aspects. It is particularly important to revisit that plan now.

How can we help you with your post-divorce or estate planning needs? Reach out to family law attorney Meg Rosan or estate attorney Jeremy Rachlin to discuss any of these important tasks!