10 Steps to Take – Post Divorce

Step 1: Preparation – What is the Best way to Prepare?

  • Obtain a copy of your Marital Dissolution Agreement (MDA) or Divorce Decree
  • Grab a highlighter and read through the document highlighting the action steps
  • Make a To-Do list to ensure each action item is completed, i.e.
    1. Filing of Qualified Domestic Relations Order (QDRO) to split Employer Sponsored Retirement Plans
    2. File a quit claim deed for real estate property
    3. Find/call a Financial Advisor/CPA

 

Step 2: Credit Cards

  • Close any remaining joint bank accounts and split the monies according to the MDA
  • Inquire about removing authorized signers or account user (closing too many accounts at one time can create a negative short term effect on your credit score)
  • Close any remaining necessary credit cards that are in joint name
  • Cancel any reoccurring charges to the closed cards
  • Update address on file and name if needed

 

Step 3: Free Credit Report

  • You are entitled one free credit report a year and its important to review to ensure it looks appropriately
  • Pull your free credit report to review by visiting freecreditreport.com or www.annualcreditreport.com
  • If you have inquiries you can call the credit agencies: Experian, TransUnion, Equifax)

 

Step 4: Bank and Investment Accounts

  • Establish any new Checking, Savings or Investment Account and transfer funds per the MDA
  • Close any joint accounts
  • Update address/name in necessary on accounts
  • Change your online passwords and pin for any accounts
  • Terminate/Update automatic withdrawals
  • Set up automatic deposit of alimony or child support, if applicable
  • Change automatic deposits for your salary, if applicable

 

Step 5: Retirement and Pension Accounts

  • Interview and retain a financial advisor to help walk you through the process below and will help guide you
  • Establish new necessary accounts such as IRA or Roth IRA
  • Contact your attorney to ensure the plan administrator has accepted the QDRO for any 401(k) funds
  • Transfer IRA, SEP IRA and other accounts per the MDA
  • Update your Address on any existing or new accounts, if necessary
  • Update Beneficiaries

 

Step 6: Life and Health Insurance

  • Update your address/name on any existing insurance policies
  • Update the beneficiaries on life insurance policy
  • Obtain additional life insurance per MDA, if required
  • Revise health insurance coverage. If you are obtaining new coverage, COBRA must be applied for within 60 days from the date of the divorce decree

 

Step 7: Real Estate, Autos, & Property/Casualty Insurance

  • Transfer title on your home/vehicles per the MDA
  • Be sure to file the deed/title change with appropriate county offices
  • Meet with a mortgage professional to discuss refinancing existing home
  • If there is an outstanding loan for your car, complete process for refinancing
  • Change the name on the utilities as necessary
  • Update insurance for your autos and home. Consider obtaining an Umbrella policy

 

Step 8: Estate Planning

  • Draft a new Will, Power of Attorney, and healthcare directive
  • Designate guardians for your children
  • Keep copies of your documents in a safe place and let a trusted person know where these documents are kept

 

Step 9: Cash Flow & Taxes

  • Contact or consult an accountant to discuss your withholding allowances and update if necessary
  • Ask your CPA about setting up quarterly payments for alimony received, if necessary
  • Complete a new cash flow analysis

 

Step 10: Find a Financial Advisor

  • Find a Financial Advisor whom you trust and can have a long-term lasting relationship. I would love to be that person and serve as a resource and guide!

I hope you have found some reassurance in knowing you are not along, and I can help. If you have any questions, call me, 615-369-1611.

Let’s talk soon!

Maleah