Post Divorce Checklist
Divorce Papers > Post Divorce > Post Divorce Checklist
The post divorce checklist is related to various aspects of life after divorce like child support, financial conditions, career, employment, retirement, child custody and property distribution.
Items in Post Divorce Checklist
- The divorce settlement might not have dealt with the topic of disbursing the expenses of divorce. In this case, it is essential to decide on a payment plan that is acceptable to the creditors
- The divorced spouses must prepare income tax estimates with the help of the accountant. This would prove useful in making quarterly tax payments. If the spouses do not observe this step, it may result in IRS (Internal Revenue Service) fines and penalties when the returns are filed
- The spouses should request their lawyers and other experts to provide a written document that points out the portion of their fees that can be deducted under IRS code section 212
- Generally, divorced parents have a feeling of guilt towards their children and hence, they tend to spend more money on the children post divorce. However, it is recommended that the parents should reveal their financial condition to the kids in an honest manner. This would not result in the children loving them any less. Moreover, the parents could save some money for the education of the children
- The custodial parent must maintain a record of the costs of raising the children. He/She should compare this document with the child support amount being paid by the non-custodial parent
- The custodial parent must maintain a precise record of the payments of child support. This would enable him/her to detect if the non-custodial parent is not observing the court orders
- Each parent should discuss the following issue with a financial advisor - 'whether the investments are adequate according to the risk tolerance.' The parent should not adhere to a too conservative approach
- The divorced spouses must intimate their creditors that a divorce has taken place. Also, make it known that the ex-spouse is presently responsible for some debts. It is essential to keep a watch whether the ex-spouse is repaying the debts. The intent is that the credit rating of the innocent spouse should not suffer
- Let us assume that some assets were registered in the names of both spouses during marriage. Post divorce, the spouses must ensure that the registration has been altered. For instance, the brokerage accounts or car registration
- The divorced spouses must arrange a meeting with a career advisor to chalk out the career plan. This must be inclusive of the education and following employment
- The spouses must retain the tax returns and supporting documentation in a secure location for minimum 3 years
- As per the divorce settlement, one spouse might get some assets or investments from the other spouse or a related broker. The recipient spouse must request tax basis records soon after the finalization of the divorce. This would prevent frustrating tax consequences
- Every divorced spouse must hire an investment manager. He/She would assist the spouse in case of allocation of investments, implementation and monitoring system
- Post divorce, all estate planning documents must be rewritten. This is inclusive of the directive to physicians, durable power of attorney, trusts and personal will
- The divorced spouses must ensure that the retirement assets are transferred as per any QDRO (Qualified Domestic Relations Orders)
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