Wrapping Up Your Divorce

Tips & Topics for Your Future

At the time the Decree of Divorce was executed by the Judge we delivered to you a certified copy of the Decree. This has the seal of the Court Clerk. It will be instrumental in a variety of contexts and we suggest you keep it in your safe deposit box together with other important papers. Make copies of the certified copy to keep in your home, but the certified copy should be kept in a safe place. It can be replaced if necessary but only at a cost.

Name and Address Changes: If you are resuming a former name and/or changing addresses, confirm changes in writing to:

• Local US Postal Service
• Social Security Administration and other government benefits programs.
• Internal Revenue Service, state and local tax authorities. See Treasury Form 8822.
• Department of Motor Vehicles
• Insurers, including medical, dental, disability, life, automobile, homeowners and tenants.
• Banks and other financial institutions
• Credit and charge account issuers

Payroll and Benefits: If you are employed outside the home, you should notify your payroll or personnel department of this change in your marital status. Be sure to notify your benefits department of any changes or requirements relating to the divorce. Obtain written confirmation of current status or required changes to the following:

• Life Insurance. If you are not the owner of the policy, find out whether there is a written procedure for notifying the insurer of any future claims applicable under the divorce judgement.
• Medical and dental insurance.
• Note deadlines for the election of COBRA or HIPAA. Be careful to file required documents within insurance carrier's specified time limitations.
• Obtain cards and claim forms.
• Retirement benefits. Follow up with QDRO or other appropriate domestic relations order.
• Other work-related benefits.

Property Transfers: We will handle deeds to real estate. Your certified copy of the Decree of Divorce should be taken to appropriate officials and officers to transfer titles to the following:

• Motor vehicles
• Stocks, options, bonds and mutual funds
• Retirement benefits
• Life insurance policies
• Real estate
• Bank accounts

Allow the officials and officers to copy your certified copy of the Decree of Divorce (the one with the embossed seal) but you need to maintain the certified copy.

Debts and Liabilities: Handle in accordance with your divorce papers.

• Obtain an updated credit report from a national credit bureau. Continue to do so every six months if your former spouse is responsible for paying down joint debt.
• Close joint credit and charge accounts.
• Mortgages. Generally, mortgage lenders do not remove a co-borrower's name unless the mortgage is refinanced. If your former spouse is responsible for making mortgage payments, get confirmation of timely compliance and review your credit report every six months.
• If your former spouse files a bankruptcy petition, consult our office immediately.

Taxes:

• Joint returns may be filed if you and your spouse are still married on December 31 of the tax year in question.
• Separate returns may be preferable in certain cases; consult your tax advisor on this.
• Dependency exemptions and tax credits may be transferred to the non-custodial parent. (Treasury Form 8322) Otherwise, the custodial parent claims the children.
• Keep copies of old tax returns for future reference. Also keep documents confirming the cost basis of your real estate, stocks and other assets. Enlist the help of your stock broker or investment broker.
• Maintain up-to-date records on capital improvements (installing a new furnace, adding on a back deck, etc.) to real estate for future reporting of capital gain or loss.
• Some of your legal fees may be deductible. Check with your tax advisor.
• Alimony is ordinarily deductible by the payor and taxable to the recipient.
• Child support and lump sum payments are non-deductible and non-taxable.

Custody and Visitation:

• Be flexible. Do not use the children to retaliate or to spy on the other parent.
• Inform schools, health and care providers and day care centers of both parents' names, addresses and telephone numbers.
• Custody and visitation may be change to reflect a substantial change in circumstances which has affected or will affect a child adversely.
• Consult with counsel at least once a year on custody and visitation (unless there are no changes to report).
• Consult your attorney if the children are in danger.
• Moving out of state with a minor child may require prior approval of the other parent or of the court if your decree or parenting agreement says so. Consult with counsel as soon as there is talk about an out-of-state move. If you move, consult with out-of-state counsel about registering alimony and support orders to facilitate collection.

Alimony:

• Alimony terminates upon death, and possibly the remarriage or cohabitation by the recipient, depending on the order or agreement. Consult with counsel for details.
• Alimony is usually deductible by the payor and taxable to the recipient. Keep accurate records of payments made/received for tax purposes. Never pay in cash. Consult with your tax advisor about the tax aspect of alimony.
• If a party's financial circumstances change, consult with counsel about a possible adjustment to alimony.

Child Support:

• Unless your agreement or court order says otherwise, child support is payable until a child turns 18 or leaves high school, whichever comes later. You will need to contact us whenever a child nears his/her 18th birthday to analyze your situation.
• If a child support is late at least 20 days, consult with counsel to implement a wage assignment and a possible contempt action.
• If financial circumstances of a parent or child change for better or worse, consult with counsel about a possible adjustment to child support.
• Never deduct from or withhold child support without a formal written document signed by both parties or a court order. Child support is never reduced for long periods of visitation unless the agreement or order says so. A parent cannot deduct from child support any sums that he or she has spent on gifts, clothes for the children, etc.

Extraordinary expenses, Uncovered health care expenses, College and other expenses:

• Do not incur any non-emergency expense without prior agreement, if you expect a contribution from your former spouse.
• Send copies of all bills to your former spouse. Keep copies for your files. Consider filing a contempt action if you do not receive reimbursement after 30 days.
• Pay your share on receipt of agreed-upon bills.
• Give your former souse the appropriate share of medical insurance proceeds on receipt.

Updating Wills and Trusts:

Now is the time to update your will and any trust agreements. These documents should be reviewed every two years or upon remarriage, birth or adoption of a child, or material change in financial circumstances. Be sure you've changed the beneficiaries for your life insurance, retirement plans, IRA, financial accounts and your will.

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