Post-Divorce Wrap-Up

If you’ve just settled your divorce or if you’re about to, there are some actions you must take. In Pennsylvania, some actions need to wait until the divorce is finalized, while others can be done beforehand.

Actions to take during the divorce process

If you haven’t taken these actions yet, now is the time!

• Open separate bank accounts in your own name. (Sometimes, during the divorce process, joint accounts may have a hold or freeze of some kind placed on the accounts to prevent the unauthorized withdrawal of funds.)
• Close all joint credit cards and open a card in your own name.
• Remove your ex as someone to whom medical providers can speak (according to HIPAA laws), and remove him/her from your living will and/or medical power of attorney.
• Change passwords and remove joint access to any online accounts, document or photo files, social media, etc.
• If you have moved, notify all appropriate entities (financial institutions, insurers, etc.) 

Actions to take immediately following the divorce

Once the divorce has been finalized, it’s time to fulfill the legal requirements of the contract that could not be completed without the final divorce decree. Follow all the directions and agreements in your divorce decree, such as:

• Divide all assets according to the agreement, whether that means surrendering physical objects (car, furniture, jewelry, etc.), dividing cash, or dividing retirement accounts.
• For many retirement accounts, you will need to file official documentation, including a Qualified Domestic Relations Order (QDRO) to ensure that the ex-spouse receives the agreed-upon funds or percentage of funds from the account.
• For the transfer of physical property such as a home or car, you must execute a quitclaim deed (to transfer real estate) or change titles (on motor vehicles) to reflect the change in ownership.
• Change the mortgage and any other debt incurred jointly to reflect the new ownership. Remember that in the case of a home, the deed determines ownership but the mortgage determines who is responsible for paying the debt. Both must be changed as simultaneously as possible.
• Notify the auto insurer of any changes in ownership.
• If appropriate, arrange that the children continue to receive health insurance under the ex-spouse’s insurance.
• If you have changed your name (for instance, taken back your maiden name) inform all creditors and financial institutions, insurers, and the Social Security Administration. Apply for a new driver’s license in your name and update your passport.
• Notify your children’s school about child custody arrangements. 

Actions to take shortly after divorcing

• Confirm that your name has been removed from all assets and debts for which you are no longer responsible. Confirm that all joint assets and debts have been severed and closed. Don’t assume it has been done correctly – confirm.
• Confirm that the QDRO documents have been properly filed and you or your spouse will receive the agreed-upon portion of retirement funds. If your ex has not submitted the paperwork, keep documentation of all your efforts, and if you do not get cooperation, consider getting a lawyer or the divorce court involved to enforce this aspect of the divorce agreement.
• Ensure that your children still have health insurance coverage, if applicable.
• Review your own life insurance coverage and change as needed to reflect your new financial situation.
• Begin to rebuild your own credit score and your finances. This may require the aid of a financial advisor. The expense may seem superfluous during this time of financial upheaval, but this is exactly when you should talk with a professional. You will want to set your finances on the right track from the beginning and create a plan that you can execute in the next few years in order to put yourself in a strong financial position.
• During this process, your initial agreements and eventually your final divorce decree will be important documents. For financial tasks, some banks and investment institutions request original documents with a seal from the court while others have less stringent requirements and only require copies. I recommend having several copies on hand and keeping detailed notes on how you progress with each account.  

If you need to talk to someone about these steps, give us a call at our Bucks County, PA office at (215) 345-5259.