In most divorce cases in most states, you cannot charge estate plans, life insurance beneficiaries, etc., until after your divorce case has been resolved and your divorce judgment has been entered by the court. However, once your divorce is final, you need to take immediate financial and legal steps to reflect your new reality. The following is a checklist of the actions that you need to take:
- Change your name on all of your financial documents, bank accounts, etc.
- Close and/or change the names on all joint accounts.
- Make sure that all credit card bills and loans are paid promptly and closed by you (or your spouse if such bills or loans were designed as their responsibility in the divorce).
- Open a checking and savings account in your name.
- Open a credit card in your name to establish your own credit history.
- Set up and start depositing money into an emergency bank account to cover 6 months of living expenses and don’t ever dip into it.
- Check all of your investment accounts to make sure that the stated ownership of stocks, bonds, mutual funds, annuities, and retirement accounts are correctly listed.
- Change your name with the Social Security department.
- Change your name on your driver’s license.
- Change the title on your automobile(s) into your name if necessary.
- Change your automobile insurance coverage into your name alone.
- Have your spouse’s name take off of the mortgage (or lease). This may be difficult to do without a refinance of the mortgage.
- Make sure that you transfer ownership of all deeds for your real estate and record with your county recorder’s office if not accomplished in the divorce case.
- Change your beneficiaries on all life insurance policies.
- Change beneficiaries on all retirement and pension plans.
- Revise your health insurance coverage, dependent on the terms of your divorce judgment.
- Make sure any Qualified Domestic Relations Orders that need to be done to divide retirement benefits per your divorce judgment get done.
- Contact an estate planning attorney and have a new estate plan done. Be sure to update your medical and financial powers of attorney.
- Speak with a financial advisor if you did not do so prior to concluding your divorce case and determine a financial roadmap for you post-divorce.
- Review your tax withholding allowances and taxes with your CPA, particularly if you are receiving or paying spousal support (alimony), and make any necessary adjustments with your payroll department.
For more information or to schedule a consultation, please contact the Orange County family law firm of The Maggio Law Firm at (949) 553-0304 or at www.maggiolawfirm.com.
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