What Happens After Divorce?
The legal and effective date of your divorce is the date the Court enters your Deree of Dissolution of Marriage. Your attorney has probably provided you with a copy of your decree, as approved by the judge. You should have also received a copy of any "Settlement Agreement", which was filed with the Court in your divorce. These documents should be kept in a safe place, among your other valuable records, for future reference.
There are quite a few things you need to attend to now that your divorce is final...
Transfer real estate
If you were awarded real estate in the property division, a quitclaim deed from your former spouse to you should be drafted, executed and recorded with the County Recorder. A copy of that deed should be forwarded to you when it is processed by the recorder.
Notify financial institutions
You are personaly responsible for contacting all your banks, stock brokers, etc., concerning any changes that need to be made with any accounts, IRAs, CDs, etc., awarded to you in the divorce.
Insurance
You need to contact your insurance companies (including life, household, automobile, health, fire, casualty and liability insurance companies) to make sure that the coverage and beneficiaries are appropriate pursuant to the terms of your divorce.
Estate planning
We recommend that you draft a new Last Will and Testament promptly to reflect your current status and create or revise any trusts affected by your divorce. You should also consider preparing a Durable Power of Attorney at this time or other Estate Planning technigues. The estate planning attorneys of Waters, Tyler, Scott, Hofmann & Doane can help you.
Remove former spouse from joint accounts
We also suggest that you remove your former's spouse's name from any joint-held accounts awarded to you, such as bank or savings accounts. You may also need to determine whether any of the beneficiaries named on your retirement account needs to be changed as a result of your divorce.
Notify government about your name change
We recommend you notify the necessary parties, including the Social Security Administration, if your name was changed as a result of the divorce. You should obtain a new driver's license from the Indiana BMV and open new credit cards, especially if your former name has been restored to you.
Health insurance (COBRA)
If you are required to cooperate in providing your former spouse with continuation/conversion application forms for health insurance or COBRA, you need to notify your employer immediately of your divorce so your employer can notify the insurance carrier within thirty days of the divorce. You will need to provide your former spouse's current mailing address as well. If you are required to provide health insurance for your minor child or children, you need to provide proof of health insurance.
Tax consequences
We recommend that you consult with an accountant to obtain his/her advice on tax consequences and tax planning. If you are receiving maintenance, remember that "spousal support" received is considered income for tax purposes.
You will need to budget money for the payment of federal and state income taxes. Quarterly estimated tax payments may be required. We strongly advise you to consult with your accountant if you are receiving maintenance from your former spouse.
If you are receiving child support payments, that income is not currently considered taxable income by you and does not have to be declared as income on your tax returns. If you are paying maintenance or spousal support, you are currently entitled to claim those payments as a deduction. If you are paying child support, remember those payments are not tax deductible.
Social Security benefits
If you were married for at least ten years prior to your divorce becoming final, you may be eligble for spousal Social Security benefits when you reach age 62, if you do not marry or for survivor benefits if your former spouse dies. This will not affect your former spouse's benefits nor will it matter if or she has remarried. Check with your local Social Security office for details and to compare this benefit to your own Social Security entitlement from your own employment.
Our divorce attorneys have answers to your questions. Contact the family law section of Waters, Tyler, Scott, Hofmann & Doane -- (812) 949-1114. Weekend and evening appointments available; major credit cards accepted.
