After your divorce is finalized, you might be overwhelmed or confused, and you may be unsure of what steps to take next. There are many relevant issues to consider after your divorce; issues regarding taxes, insurance, child support, and your assets should all be taken into account.
If possible, you might want to consult a financial advisor before your divorce is final, or at the earliest convenience. Though it may seem overwhelming at first, taking an organized and systematic approach after your divorce can help to put your mind at ease.
The steps you take now can help ensure that you have a solid foundation for your new life.
One of the first things you will want to address is the custody of your children. Though it was settled in court, you may desire to make changes or adjustments to the custody terms.
Alterations made to custody terms are among the most common made in California; luckily, in California, it is possible to alter the custody, child support, or visitation terms after the divorce is finalized. Adjustments can be made at any time without a significant change in circumstances.
Changes often occur regarding change in a parent’s work schedule, one of the parents moving, a change in the child’s preference, or one of the parents being deemed irresponsible.
If you feel any of these factors apply to you and you’d like to make modifications, consult your attorney, who can help you complete the correct file for a child support or custody modification.
Another thing you need to take care of after your divorce is your assets, and insurance beneficiaries. Let your employer know about the separation so that your income tax withholding status can be changed, as well as the beneficiary of your employee benefits.
Your employer will contact the spouse about the cost of continued health insurance. Now is also a good time to change your retirement account beneficiaries.
If you haven’t already, be sure to close any credit card accounts that list both you and your spouse, and reopen them in your name alone. While you’re taking care of splitting up assets, you may need to change the title of your car, if it’s determined that only one spouse will take a vehicle that you used to jointly own.
To change the title, you will need to file a Notice of Transfer and Release of Liability at the Department of Motor Vehicles. The biggest asset you may need to split could be your 401K. Be sure to work with your attorney to take care of your 401K, as this is a key step to preparing for your future.
Once you have taken care of these main issues, it is a good idea to establish a budget. You may need to live off your divorce settlement now, or you could invest your settlement for the long term.
Any additional questions regarding taxes or credit can be addressed to your attorney. Compile a list of any matters or concerns that are confusing to you and inform your attorney about them. Once you have laid the foundation for your new life, you can focus on getting a fresh start.
