If you’ve recently gone through a divorce, I have some bad news: there’s probably more paperwork ahead. I know this is likely the last thing you want to hear after spending countless exhausting hours on your divorce, and having worked as an attorney for over twenty years, I understand the significant toll that the divorce process can take.
Yet, I often tell my clients that these steps are crucial for establishing themselves post-divorce. While they may want to change their name, which requires taking on the Social Security Administration and updating all their accounts, doing so allows them to reclaim their identity separate from their former spouse. Similarly, while they may need to rewrite their estate plan, they can now be confident that their children will inherit the assets they have spent their lives building.
Even though more legal paperwork lies ahead after a divorce is finalized in most cases, these are essential steps to tie up loose ends and build confidence as you move into the next chapter of your life. In this blog, we’ll review the legal checklist of tasks to ensure that you can step into this new phase with confidence.
If you're planning to return to your maiden, former name, or adopt a new last name post-divorce, you’ll need to start with the Social Security Administration, as your Social Security card serves as the foundation for most other name changes. You'll need to visit your local SSA office with your certified divorce decree and complete Form SS-5.
Once you receive your updated Social Security card, you’ll then be able to update:
Trust me, I know that this process is overwhelming, but creating a detailed list and handling a few updates each day will make it more manageable. Each step brings you closer to a brighter future.
Your divorce significantly changes your estate planning needs, making it crucial to update your estate planning documents to reflect your current situation. I’m sure you’ve seen movies and TV episodes where entire storylines revolve around this very issue: a couple divorces, but the estate plan is never updated, leaving the new spouse devastated when they learn that the former spouse will inherit part of the estate. Fans of the ‘Sex and the City' revival show ‘And Just Like That’ will remember this story arc from Season One, but I won’t spoil it for you if you haven’t seen it!
Once your divorce is finalized and you’re ready to update your estate plan, start by drafting a new will that clearly states how you'd like your assets distributed. If you have a trust, make sure to update it as well. During this process, consider how your divorce settlement has impacted your available assets and be specific about your wishes for items like personal property and family heirlooms, too.
Since many people have their spouses serve as the power of attorney for both financial and healthcare decisions, it’s also important to update this accordingly. If your former spouse previously held these roles, appoint new agents who can make critical decisions if you become incapacitated. If you have a healthcare directive or living will, these should also be updated to remove your former spouse from decision-making roles.
Finally, if you have minor children, it is especially crucial to update guardianship designations. Your estate plan should clearly specify who will care for your children if something happens to you and/or your ex-spouse, depending on your custody arrangement.
While creating a new estate plan is vital, the next step is to update beneficiary designations on all your accounts and policies. This is important because these designations take precedence over instructions in your Will, meaning that if your ex-spouse is listed as the beneficiary of your 401(k), even if your Will states that the money should go to your children, it will, in most cases, go to your ex.
Review and update each account separately to ensure your assets are distributed to your intended beneficiaries. A common list of accounts you should review and update is:
If you have additional smaller accounts, ensure they are updated as well. While this process can be tedious, it is a crucial step in ensuring that your legacy accurately reflects your wishes and values.
After your divorce, it is crucial to manage any joint accounts with your ex quickly to protect your finances and set clear boundaries. While you and your ex-spouse may have already opened separate bank accounts, establishing individual accounts should be a priority once the divorce is finalized, if it has not been done yet. However, if you need to keep joint accounts for child-related expenses, set clear rules for deposits, withdrawals, and oversight.
Joint credit card accounts also should be managed post-divorce to ensure that your former spouse isn't making any changes that could impact your credit score. If you’re worried about this being an issue, you may also want to set up fraud alerts to prevent unauthorized access.
Besides your bank and credit card accounts, another important account to manage is any investment accounts, especially if they include assets that were split during your divorce. I recommend consulting with a financial advisor to ensure assets are transferred correctly according to your divorce decree.
While completing these post-divorce legal tasks might feel overwhelming, remember that each item checked off this list is a step toward independence and peace of mind. You're actively laying the foundation for moving forward and protecting what matters most to you and your family.
As you tackle these tasks, don't hesitate to seek guidance from professionals who can help you with the more complex parts of estate planning and financial management. Investing in getting these details right now can protect you and your loved ones from potential future issues.
If you have questions about navigating the legal post-divorce steps or want guidance, we're here to help. Please contact the Law Offices of Kerri Cohen at (410) 657-2515 or info@CohenLegalTeam.com to get started.
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