By Laura M. D’Orsi, Esq.
If you are recently divorced, you may be recovering from the shell shock of what you just went through over the past months or years. The following is a guide to steps that can be taken to restart your life after your divorce.
A. Review your divorce agreement and make sure you are in compliance with what is required, make sure that you have received all of the assets you are to receive in the divorce and that the appropriate Qualified Domestic Relations Orders (“QDROs”) are being drafted, that the life insurance is in place and that all deeds have been prepared, car title has been transferred and accounts have been transferred/ closed.
B. Have your accountant review your divorce agreement to ensure that you are properly withholding for your taxes, if you are receiving or paying alimony. If you do not withhold taxes and you are receiving alimony, you will have to pay a significant sum on April 15 the year after you receive your first alimony payment.
C. Review your expenses and come up with a budget. Make sure that you require all of the regular expenses that you pay. If you require more funds, consider increasing deductibles so that you have more expendable income. Review your cellular phone and home internet/ cable bill, and other bills, and determine if you need all of the services provided. Cut back where appropriate.
D. Obtain new health insurance, car insurance and life insurance immediately after your divorce, if you no longer have these types of insurances.
E.Meet with a financial planner to review the assets that you own and the liabilities that you have. Be aware of what you have, what you owe and what you are entitled to under your divorce agreement.
F. Meet with an attorney and have a new will, Power of Attorney and Living Will prepared on your behalf.
G. Review your employment situation. If you are not employed, consider obtaining employment to supplement any alimony/ child support that you might receive. Again, review your divorce agreement to ensure that the fact that you are working will not impact the terms of the agreement.
H. Make sure you have changed all beneficiaries for your life insurance, pensions, annuities, accounts, and 401K plans, if you are not required to maintain your former spouse as the beneficiary of these policies/ plans.
I. Make sure all of the utility bills are in your own name, and remove your former spouses from the utility bills. Make sure all joint credit cards are closed and remove former spouse from same. You also may want to obtain a credit report to verify that all joint accounts are closed.
J. Change passwords for accounts and email accounts, including Facebook, Instagram, and Twitter.
K. Plan a day out where you can enjoy your new found life. This could be a day at the beach, a spa day or a day in the city or at a ball game.