CSG Law Alert: I’m Finally Divorced! Now What?
Congratulations! You have finally signed your Marital Settlement Agreement, and your Judgment of Divorce has been entered. While you may initially breathe a sigh of relief and think there is nothing left for you to do, it may be extremely important for you to retain certain documents and to effectuate the terms of your Agreement. There may also be next steps that you need to take. If post-divorce precautions are not followed, issues between you and your ex-spouse may arise in the future. Below is a guide to avoid potential problems post-divorce.
- Retain Important Documents: In addition to keeping a copy of your Marital Settlement Agreement and Judgment of Divorce in a safe and secure location, there may be other documents that were prepared or produced in discovery that should be retained for future reference, such as copies of income tax returns, expert reports and/or evaluations. If you have provided original documents to your attorney, consider requesting them as your attorney is not required to keep them.
- Beneficiaries: During the divorce process, you may have been required to maintain beneficiaries on insurance policies and/or retirement assets. Post-divorce may be the time to update your policies and retirement beneficiaries but be mindful of the terms and requirements of your Agreement and existing orders.
- Retirement Accounts: Retirement accounts are often subject to distribution as part of a divorce or settlement. The distribution, however, is not automatic. Generally, a separate order or letter of instruction is required for retirement accounts to be divided by way of a Qualified Domestic Relations Order (QDRO) or by a rollover. Commencing this process immediately after the divorce process (or during the process) and utilizing the account statements that you have retained, is key to ensuring that you receive the asset distributions and dollar amounts to which you are entitled. Failure to do so in a timely manner may put the asset at risk in the event of remarriage and death.
- Retitle Real Property: You may be retaining the marital home in your divorce; however, the transfer of your ex-spouse’s interest to you is not effectuated until the property is retitled by way of a revised deed so that your ex-spouse’s interest in the property is extinguished. It is also important to transfer title to real property in a timely manner after a divorce to avoid possible transfer taxes or other fees.
- Name Change: Even though the court may have signed an Order for Name Change allowing you to resume the use of a prior name, your name will not automatically change with various State/Federal Agencies. There is a specific set of steps and procedures that must be followed to effectuate your name change, such as sending the Order to the Department of Treasury, which must be completed within 45 days of entry of the Order. It is important that you take action.
- Estate Planning: Updating a Last Will and Testament to reflect your choices of beneficiaries and the distribution of your assets may be prudent after a divorce. It is also important that you have a Living Will, Power of Attorney and Health Care to ensure that your wishes are carried out by individuals you trust and designate (and potentially not your previous spouse).
For more information on this issue or other family law matters, please contact the Family Law Group at CSG Law.