You might view divorce as a series of distinct steps:
filing the paperwork, negotiating with your ex, getting a
settlement and reaching the end of your marriage. Yet
still more work – sometimes lots of it – remains after
your divorce.
First, your settlement agreement likely stipulates
actions and tasks that you must finish, often under
deadlines. Develop a checklist with each action item
and due-date, with room for comments and
additional steps.
The court may not specifically set the deadline for
other post-divorce activities that you nonetheless need
to complete. For example, if resuming use of your
maiden name, you need to call your credit card
companies and banks to ask about documentation
requirements (probably a copy of your divorce decree
or other such paperwork).
Paperwork associated with name changes can take
time, so make a list of all of firms and individuals who
need to know about your name change, such as the
human resources department at the Social Security
Administration and your employer’s office, school
administrators, investment advisor, insurance company
and doctor.
Other possible paperwork and tasks after
your settlement:
Reevaluate estate plans. Consider revising
beneficiaries for your will, life insurance and bank and
retirement accounts. You may also wish to draw up: a
new power of attorney so someone can handle your
financial affairs if you are unable to revised medical
directives and possibly assign custodians for underage
children in case both you and your ex-spouse
die unexpectedly.
Track funds’ transfers. You may be required to
transfer some or all of your individual retirement
accounts, 401(k)s or pension plans to your ex-spouse.
Administrators of 401(k) or pension plans generally
require court-signed qualified domestic relations orders
(QDROs) to begin any transfers or to divide a pension
plan – and usually won’t accept any documents that
don’t conform. Carefully track the movement of the
accounts involved.
If you are to receive transfer of IRA or 401(k) money,
you must decide where the funds will go. If you don’t
currently have an IRA, be certain that you open the
correct type. For example, if you are receiving funds
from a Roth IRA, open a Roth IRA if receiving funds
from a traditional IRA or a 401(k), open a
traditional IRA.
To ensure you receive transferred funds without
incurring taxes, transfer funds (if the plans allow) to
your IRA or current 401(k), from custodian
to custodian.
Document any transfers and save the paperwork for
tax filing and other purposes.
Pre-plan to sell property. If you are required to sell
your marital home, start preparing for the sale. Engage
an experienced real estate agent to help you
determine where to improve the home to fetch the best
price. If you already moved and your ex-spouse still
lives in the home, make arrangements so you can
remove any remaining items.
Keep good records. Retain all documents relating to
your divorce, such as the decree, the settlement
agreement and parenting plan. Keep copies that prove
you performed in time the actions that the settlement
agreement required.
Also keep copies of receipt or payment of alimony,
child support, children’s expenses and property.