Tag Archive for: divorce

Divorce and Your Parents’ Money: Does Any Belong to Your Spouse?

With divorce comes the equitable (or fair) division of marital property (property acquired during the marriage). Generally, assets owned by a spouse’s parent are not considered marital property, so your spouse should not have a valid claim to them. But this is divorce law, so there are possible exceptions that may make your case complicated. 

How Would Equitable Division Impact Past Trust Payments or Gifts? 

Clarifying which property is marital and what is not is spelled out in Pennsylvania statute (35 Pa.C.S.A. §3501(a)). Under the law, generally, property that is a gift from your parents, directly or through a trust fund, would not be marital property as long as you treat it as separate, personal property:  

  • Non-marital property: You put it in a bank account with your name, your spouse cannot access it, and you spend it for personal reasons. You buy yourself a car with it or spend it on furnishing your home office. 
  • Marital property: It is in a joint account, used to purchase marital assets or to pay ordinary marital expenses. 

Also not marital property is money you manage for your parents. If you are spending it to benefit them and your spouse has no access and it has not been used for marital purposes, that property belongs to your parents.  

How Would Alimony Impact Future Trust Payments or Gifts? 

The property you receive after your marriage ends is not marital. A spouse cannot have a claim on a future inheritance, trust fund payments, or gifts from parents you have not received yet as marital property. However, if your spouse is awarded alimony, you may need this future income to pay it. 

If you used commingled past trust fund payments and gifts and paid joint living expenses and property with it, they helped you establish your standard of living. If your spouse seeks spousal support or alimony and you agree to it, or a judge orders it if there is no agreement, one of seventeen factors is the standard of living the two of you established during your marriage.  

The fact that you improved your standard of living during your marriage by commingling trust payments and marital income may end up aiding your spouse’s argument that alimony should be paid. You may spend future trust fund payments on alimony, so indirectly, your spouse may end up with part of those future payments. 

Another alimony factor is the “expectancies and inheritances of the parties.” Alimony amounts can change in the future if there are “changed circumstances of either party of a substantial and continuing nature whereupon the order may be modified, suspended, terminated or reinstituted or a new order made.”  

A future inheritance is not marital property, but if you receive an inheritance so large that your circumstances have changed in a “substantial and continuing nature,” your ex-spouse could ask a court to obtain alimony or increase payments after that happens. Like trust payments, though a future inheritance is not marital property to be divided, your spouse may get some of it through increased alimony payments. 

On the flip side, if you receive alimony and after your divorce get the benefit of sizable trust fund payments, gifts, or an inheritance from a parent, your ex-spouse may ask a court that their alimony payments be reduced or ended because you no longer need financial support given this extra income you have received. 

Equitable Distribution and Alimony Issues Can Get Complicated. Let Us Unravel Them for You.

Contact Karen Ann Ulmer, PC, today if you are considering getting divorced and have questions or have decided it is right for you and need legal representation. Call us at (215) 752-6200 or fill out our online contact form. 

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Preparing to Lose Benefits After a Divorce

If you rely on your spouse for health insurance and retirement benefits, losing them will be one of the costs of a divorce. There are also tax benefits to marriage that will end. But your losses may be lessened with planning and the right advice and preparation from your divorce attorney.

Health Insurance 

Most people get health insurance as a workplace benefit. The US Census estimates that in 2019, 55.4% of those with medical coverage got it through the workplace. If you currently work and are covered by your spouse, find out if your employer offers health insurance benefits, and if so, its benefits and costs. If you are looking for a new job after your marriage ends, these benefits may be a key to making a position attractive. 

If your spouse can get health insurance through their job, and you have children, it probably makes the most financial sense to have them covered by these benefits.  

The federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) changed the Employee Retirement Income Security Act (ERISA), the Public Health Service Act, and the Internal Revenue Code to require group health plans to provide a temporary continuation in situations where it may otherwise end.  

If you were covered by your spouse’s medical benefits when you divorced, it could continue. But you will pay your entire premium (there will be no employer contribution), and it will not be available forever (it lasts up to 36 months). Because of its expense, COBRA coverage is often a “bridge” to your subsequent, more affordable health coverage. 

If coverage through your job is not an option, you should consider plans available through the Affordable Care Act (ACA or Obamacare) marketplace. If your income is low enough, you may qualify for a subsidy. Your cost will not be affected by pre-existing conditions, but the coverage’s quality,  your age, whether you are covering your children, and your location will impact the premium. You have 60 days from your divorce to enroll. If you miss that deadline, you must wait until the next open enrollment. 

Tax Breaks 

The impact on your taxes will vary. If your income is higher or equivalent to what your spouse earns, you will probably pay a higher tax rate after your divorce because married couples filing jointly usually pay fewer taxes. There is also a larger limit on charitable contributions. If you make substantially less than your spouse post-divorce, you may be in a lower tax bracket and pay less. 

If your divorce was finalized after December 31, 2018, and you pay alimony, you cannot deduct it from your income. If you collect alimony, it is not taxable income. Likewise, child support payments are not deductible and are not considered income for the parent obtaining the support. 

Retirement Benefits 

Retirement benefits like 401(k) accounts and pensions are generally considered marital property, so they could be equitably divided during the divorce. During the divorce process, all marital property is inventoried. A fair amount for each is negotiated by the parties or ordered by a judge after a trial. It is common that instead of retirement benefits being split up, they will stay with the spouse who earned them, while that party gives up an equivalent amount of other assets to make up for it. 

There are many moving parts to a divorce, and the number and size of those parts vary with each couple. Contact Karen Ann Ulmer, P.C., today because we are here to help you with a divorce. If you are considering getting divorced and have questions, or you have decided it is right for you and you need legal representation, call us today. 

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How Much Should It Cost My Spouse to Buy Out the House?

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Equity in a home may be a married couple’s biggest asset. Before deciding what to do with the marital home in a divorce, you must find out how much that equity is and what the home would probably sell for if it was put on the market. Get professional help for this task. There is too much at stake to try to come up with some figures after a couple of hours of internet research. 

Why Does This Matter? 

The assets and debts of married couples are equitably divided in Pennsylvania divorce proceedings. If the couple has a house and a mortgage, who gets what is an essential part of the process. That starts with determining the home’s value and how much equity each party has.  

The home is usually a significant component of the overall agreement of how assets and debts are divided. If the parties cannot agree, assets and debts can be divided by a judge after a trial. This is the most time and resource-consuming way to resolve the issue, which is why it is the route of last resort if the parties cannot agree. 

This does not matter if the house is not marital property subject to division. It may have been owned by one spouse before marriage, though the other spouse may make a claim to its increase in value since the marriage began.  

The parties may also have a premarital or prenuptial agreement spelling out who will get the home in case there is a divorce or a formula to determine an amount. A prenup may also spell out the amount that one needs to pay to buy out the other’s interest. 

Another option is selling the house. After the mortgage, liens, taxes, and costs are paid, the profit left over is part of the cash the two of you will divide. 

What is Home Equity? 

Appraised Value – (Balance of Mortgages + Liens) = Home Equity 

The higher the appraised value and the lower the balances for your mortgage and liens (if you have any), the more home equity you have. The two of you should agree on a professional appraiser to determine the appraised value. Each of you could hire your own, and the result may or may not differ, but no matter the outcome, the cost is double that of just hiring one. 

Avoid a do-it-yourself appraisal. Unless you are a trained professional, you do not know what you are doing. Properties you think are comparable may not be, and you may miss properties that genuinely are similar. This approach could cost you far more than the money you save by not hiring an appraiser. If you are buying out your spouse, you may come up with an inaccurate value that is too high, or if you are the one receiving money or other assets, your figure may be too low. 

The spouse buying out the other should hire a home inspector. That extra pair of educated eyes could find hidden problems impacting the value. It is better to learn about them sooner than later. 

How Will I Pay to Purchase My Spouse’s Interest in the House? 

There are different options. If none are feasible, you will not be able to buy your spouse out. As much as you may want to keep the house, if you can not afford it, you must move on. 

The simplest way is to pay cash, but not many people have that much in reserve. You could refinance the mortgage, but interest rates are up, and qualifying may be difficult. You would pay off the existing mortgage balance through the refinance and use the equity to pay the other spouse. If your application is accepted, your monthly payment may be more than what you pay now. 

Another option might be that the other party will accept payments over time, and the property title changes after the last one is made. This will require a written contract, and both sides will want to protect their interests if, in the future, the paying party cannot afford full payments or complete the deal within the specified time frame. 

Because all marital assets are subject to equitable division, one way to buy out your spouse is to transfer or give up your claims to other assets. Read our blog article I Want to Buy My Spouse Out of the House for more information.

If you have any questions about what will happen with your home after a divorce or need legal representation, please contact us here at Karen Ann Ulmer, P.C. We can discuss how this may play out and how we can help you through the process. 

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I Want to Buy My Spouse Out of the House

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If you and your spouse are divorcing and you own a home, you have some options. If you want the property, you will need to pay your spouse for their equity share. One way to accomplish this is to trade assets or property as part of the divorce process.  

Splitting up your debts, assets, and possessions fairly and equitably will be part of your divorce. It can be very contentious, but ideally, the parties should consider this a business transaction. The two of you will start a new personal life, and to accomplish that, you will need to split your financial lives in a way you can both accept. 

You can reach a resolution or litigate the issue and have the judge decide. If that is where the case ends up, you will give up controlling the outcome, which will cost you more time, energy, and money.  

How Can I Make This Work? 

If you prefer to live in your marital home, you will need to pay your spouse for their ownership interest. 

Often during divorces, the spouses agree and disagree on a mix of assets. You could offer your spouse something that is clearly yours and give up your rights to assets that are contested. Consider the following scenarios: 

  • The two of you have $100,000 in home equity. To buy out your spouse’s $50,000 share, you could give up your $50,000 interest in a joint investment account or a 401k. 
  • You are claiming spousal support. You may give it up or reduce it in exchange for your spouse’s home equity.

Ideally, your spouse will be open to swapping assets to cover their home equity, and it will be enough to cover the whole amount. If that is not the case, you could pursue a cash-out finance but keep in mind the following:

  • You would refinance your mortgage, but in your name only. 
  • This is only an option if you qualify for the loan and can afford the new monthly payments, which will probably be higher than what the two of you now pay. You are also subject to the going loan rates, which are going up and down. 
  • If you are the sole owner, you must also be able to afford all the other costs that come with home ownership, such as taxes, utilities, maintenance, repairs, and insurance. 
  • The refinance gives you access to the home equity, which you can use to pay your spouse.

Given the number of divorces, this is nothing new for mortgage companies. However, if this is your first divorce, it is new to you. Refinancing a mortgage during a divorce will probably involve substantial potential financial liability, so this should not be decided upon quickly without advice from an attorney. 

What Could Be My Plan B? 

As much as you want the house, depending on your post-divorce income and assets, buying out your spouse could make you house-rich and money-poor. You may end up with not enough money to go anywhere or do anything, and being one major house repair away from living on credit cards. Your spouse could buy you out, or the two of you could sell the house and split the profit. The money you receive could be your down payment on a more affordable house.  

Who Will Own Your House is Just One of Many Issues 

If you are considering getting divorced and concerned about where you’ll live afterward, contact us here at Karen Ann Ulmer, P.C., so we can answer your questions and discuss how we can help you.   

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What is a Master in Divorce?

The master in divorce is an experienced family law attorney appointed by the court who may help you and your spouse resolve your differences. Masters resolve contested divorce and annulment cases, including post-divorce alimony and equitable division of debts and assets. A divorce master will not provide legal advice or help you file for divorce.  

The master does most of the court’s work in a divorce case. This process aims to lessen the judges’ workload, resolve disagreements and prevent cases from going to trial. A master’s duties include conducting conferences to resolve the following issues: 

  • Equitable division, alimony changes, and child custody disputes 
  • Counsel fees, costs, and expenses 
  • Special relief and discovery (the process by which the parties exchange information, documents, and testimony before a trial)  

The master (the term “hearing officer” is used in the statute) can hear testimony and take evidence. 

How Does This Work? 

After discovery, the parties may agree on the division of your assets and debts, for example. If so, we will draft a settlement agreement outlining the agreement’s terms, file it with the court, and if all goes well, it will be part of the divorce decree. If we cannot reach an agreement, we can request a masters hearing, which may come four to six months later. 

Before the hearing, we will create a document for the court stating the relevant information in your case, including facts about you, your children, spouse, incomes, and assets. With it will be copies of relevant documents the parties exchanged during discovery. Your spouse and their attorney will do the same. The master will review both sides’ submissions before the hearing to understand the issues the two of you have resolved and those still in dispute. At the hearing, both spouses, their lawyers, and the master meet in a courthouse conference room.  

If the master feels the need, testimony would be taken to create a complete record of the relevant facts. If some facts are disputed, the master may use testimony to make credibility judgments about the parties and witnesses. 

The master makes recommendations to help the parties reach an agreement.  If you do so at the hearing, the agreement is read to a court reporter, who records it as a court transcript. The master sends the file to the judge, who signs the final decree. 

If there is no agreement at the hearing, the master writes a report with a statement of facts, conclusions of law, and a recommendation to resolve the issue. It is sent to the attorneys in the case. We would have 20 days to discuss and accept or reject it. We could also ask the master for a new hearing. If one or both sides disagree, the recommendation can be appealed, and a hearing with a judge will be requested. The judge will hear arguments on the exceptions at the hearing and issue a final decree. 

Get the Help You Need From Attorneys You Can Trust 

A divorce has many moving pieces. You can get into trouble if you do not understand how it all works together. A critical component is court procedures. You may have a strong case that should help you reach your goals, but if you do not know how the court system works, what you need to do, and who does what, you may fall far short.  

The attorneys at Karen Ann Ulmer, P.C., can answer your questions and represent you in your divorce so you will have the best chance possible for a positive outcome. Contact us today to see how we can help.   

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Divorce and Life Insurance

Divorce will cause many changes in your life, but one thing never changes – no one lives forever. Life insurance is an essential financial tool to help those you leave behind. Whether you are married or not, life insurance is critical if you have minor children. 

Many potential life insurance issues may arise during a divorce. We can help you navigate them so you and your children can avoid legal and financial problems later on. 

Your Policy May Be a Marital Asset Subject to Equitable Division 

Whole and universal life policies have a cash value, so they are part of your net worth. It must be listed as a marital asset to be divided, and it may be cashed out and divided between you and your spouse. A term life policy does not have a present cash value, so it is not a marital asset and is not subject to division. But it can still come into play because, as part of the divorce order, you may need to maintain life insurance coverage to benefit your children. 

Changing the Beneficiary After Your Divorce 

Married couples typically name each other as life insurance beneficiaries to cushion the financial blow when one dies. Pennsylvania estate law automatically nullifies the ex-spouse’s beneficiary pre-divorce designation in a private life insurance policy.  

Your ex could still be the beneficiary if your settlement agreement or divorce order clearly provides they are to continue. If you and your ex are on good enough terms and you feel your ex is capable, part of an agreement can be that they will care for your minor children after your death.  

If that is the case, you could create a trust funded by your policy’s proceeds with your ex as the trustee and your children as the beneficiaries. If your ex is the policy’s beneficiary and you pass away without a trust, they could spend the money on themselves if they wish. 

You May Be Legally Obligated to Carry Life Insurance 

You may need to maintain life insurance if you will pay child and/or spousal support (or alimony) either as part of the agreement with your spouse or due to the divorce order. If you pass away unexpectedly, the benefits will replace the support you would have paid during your lifetime. 

Not everything goes as planned. A spouse required to have life insurance may stop paying premiums without you or the court being aware of the problem. This can be addressed by:  

  • Providing the insurance carrier with a copy of the divorce decree with instructions that the beneficiary is to be notified if the policy changes or if the premiums go unpaid 
  • Having the beneficiary own the policy and make payments 
  • Adding the premium amount to the child and/or spousal support with the beneficiary using this money to pay the premium 

Planning on unforeseen, potential problems like missed premiums and addressing them before they happen can be the ounce of prevention that is worth a pound of cure. 

If You Have Children and Are Getting Divorced, Life Insurance Makes Sense 

Whether your ex is a responsible parent or not, whether life insurance is part of the divorce decree or not, if you have young children, you should consider purchasing life insurance as part of estate planning. You may have created an estate plan with your spouse. If so, it needs to change. If not, you should make one for yourself. 

If your ex will be the single parent to your kids with your unexpected passing, fund a trust for them through insurance proceeds with your ex as the trustee. If the other parent is out of the picture or otherwise incapable, through your will you can nominate someone as your kids’ guardian (although a judge has the final say). That person could also be the trustee, and insurance proceeds would help fund your children’s expenses as they grow up. 

If you are thinking about getting divorced and all the financial issues (like life insurance) that come with it, contact us at Karen Ann Ulmer, P.C., so we can answer your questions and discuss how we can help you.  

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Should I Move During My Divorce?

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Not to sound like a lawyer, but that depends. If you feel unsafe or your spouse drives you crazy, you should move, but you should be aware of and prepare for the negative consequences. If you can still tolerate each other and be civil, you’re probably better off staying in the home, at least until you reach a divorce agreement. 

Moving out makes the most sense when: 

  • You’re earning an income that will pay for both homes’ expenses 
  • You don’t have kids or, if you do, you aren’t interested in having primary custody 
  • You (and your kids) must leave an abusive situation 
  • You’re not interested in owning the house when marital assets are divided 

Should you stay or should you go? You have to consider the issues: 

  1. Would Moving Impact a Custody Dispute? 

If you have kids, do you plan to move out with them, or will they stay with the other parent? Moving out of the home while your kids remain will likely impact your custody claim, so if that’s a priority, stay where you are. 

Unless you’re involved in an abusive relationship, it’s usually in a child’s best interests to stay in the family home during a divorce because it should minimize the potential disruptions to children’s lives.  

  1. How Would Moving Affect Your Finances in the Short and Long Term? 

Moving means two households and possibly twice as many expenses. Leaving your marital home doesn’t mean you no longer need to worry about its bills. If you share the title and a mortgage to a house, you must keep up the payments. You’ll have your new expenses, plus your old ones. Can you swing that? 

Your house may be the most valuable asset the two of you own. Though it’s no guarantee, when it’s time to decide who will get the house, the spouse living in or maintaining it can have a stronger claim than the one who moved out or who isn’t helping to maintain it.  

If you want the house when marital property is divided, remaining in it may help protect your interests. Leaving is not a big deal if you don’t want the house and would rather have your share of it paid to you in cash or some other asset. 

  1. Might Remaining at Home Push the Divorce Process Along? 

Emotionally, moving out can be a mixed bag. In the short term, the two of you are physically away from a source of stress which should improve your peace of mind. This reduced stress takes some pressure off and makes finalizing the divorce less urgent. Therefore negotiations may drag out longer. If you share the same household, the two of you may be more motivated to get the divorce over and done with. 

Don’t Make a Move Without Talking to Us 

Moving out of your marital home may have far more consequences than you realize. You may see living on your own as a major goal that shouldn’t wait for a finalized divorce. Depending on your circumstances, you may be able to achieve that with minimal impact on your interests. It may also be a significant financial stretch that can impact your ability to get custody of your kids and your house as part of the division of assets. 

Should you move during your divorce? Like all other issues, that depends on your goals, situation, and the law’s impact. If you’re thinking about getting divorced and how that’ll impact where you’ll live, contact us here at Karen Ann Ulmer, P.C., so we can answer your questions and discuss how we can help you.  

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Postnuptial Agreements: Better Late Than Never

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A properly executed, valid agreement made before or after a couple marries should simplify divorce proceedings. Prenuptial (or in Pennsylvania, premarital) agreements are better known and, generally, easier to enforce. A contract made after a marriage takes place (a postnuptial agreement), though different, can accomplish many of the same goals and be very useful if you divorce. 

What Can a Postnuptial Agreement Cover? 

Postnuptial agreements can cover critical issues, so you should have legal representation when one is negotiated and executed. Without a lawyer’s help, you may agree to a one-sided contract that can severely disadvantage you if you divorce. A red flag would be if your spouse is represented by an attorney, but you’re not. 

Postnuptial agreements can lay out what happens to the couple’s assets and debts if they divorce, ideally shortening the divorce process and simplifying it. A wide range of issues can be covered, including what happens to a business that one or both parties own. They can also set down rules on what will happen to assets if a spouse engages in destructive habits like infidelity, substance abuse, or squandering the couple’s resources. 

What Must a Postnuptial Agreement Have to be Enforced By a Court? 

There are many potential issues concerning the enforceability of Pennsylvania postnuptial agreements: 

  • They must be in writing. 
  • There should be full disclosure by both parties of income, assets, and property, but that can be waived by one or both parties.  
  • A postnuptial agreement, ideally, should be fair, but that’s not a requirement. Courts interpret these agreements by using contract law. Its focus is more on the fairness of the process and less on the outcome, though a court wouldn’t approve of a spouse being left destitute. 
  • Both parties must voluntarily and fully agree to the agreement’s terms. A spouse may claim their agreement was the result of fraud or duress, so it shouldn’t be enforced.   

If you’re going through the time and expense of this process, you should make sure what you want becomes a reality. Legal representation should prevent enforcement problems before they happen.  

When Only One Spouse Wants a Postnuptial Agreement 

Agreements can be very helpful from a legal perspective, but creating one may not excite your spouse as much as your lawyer.  

  • Both of you may have fundamental disagreements about how assets would be handled through a divorce 
  • One may fear the process of creating a postnuptial agreement will needlessly add stress to your relationship  
  • If one of you earns much more than the other, the one making less may fear an agreement will put them at a disadvantage 

If these are issues, the two of you should have open and honest discussions. If creating an agreement is important to you, but your spouse refuses, contact our office so we can talk about this and the best way to move forward. 

If you have any questions about postnuptial agreements or want help negotiating and drafting one, please contact us here at Karen Ann Ulmer, P.C. We can discuss your options and how we can help you.

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What are Your Divorce Options? 

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Like most lawsuits and legal disputes, nearly all divorces resolve outside of a courtroom. Most parties can’t justify the costs of a trial in money, time, energy, and stress. How you approach your divorce and its resolution depends on you and your spouse.  

Divorcing spouses come from all different emotional directions. They may be heartbroken, emotionally exhausted, or enraged. They may be willing to settle at all costs and just get the divorce over with or be eager to fight over every penny. After learning about the law and going through the process, most couples, no matter their starting point, realize that reaching a resolution is the best option. 

Do You Want to Go to Court? 

Going to court usually happens when one or both parties are unreasonable. One side may look at the issues rationally, but the other makes unreasonable, unacceptable settlement demands. Sometimes both parties are willing and able to use litigation to try to legally bludgeon the other spouse to get what they think will be a victory. 

There are many reasons to avoid litigation. The cost in time and expense can be substantial, especially if the issues are complex and there’s a lot of evidence that could be admitted. Even if you get a favorable judgment, the other party may appeal, potentially prolonging the case for years. 

Litigation puts the outcome into the hands of a judge or jury. It’s like handing over your car keys to someone you don’t know and giving them directions, but they ultimately decide where you’ll end up. In this situation, the issue is not which town you’ll be in. It’s what will happen with your future life, your finances, and your children. 

How Do You Want to Approach Your Divorce? 

Nearly all divorces are uncontested, but you could try to fight your spouse’s attempt to get one. Unless you have compelling reasons, contesting a divorce when your spouse no longer wants to be married, for practical and legal reasons, probably doesn’t make sense. 

If the two of you understand the relationship is over and have no (or few) axes to grind, a collaborative divorce is worth considering. It’s a divorce in which both parties agree to do their best to resolve their issues out of court (though resolving them in court is an option if their efforts fail). It works best when you’re both amicable and will talk and act in good faith. It may also work when financial issues are already worked out in a prenuptial agreement.  

Disagreements that you can’t resolve need not end up in court. Another option is using a mediator, a neutral third party (usually an attorney, sometimes a retired judge) who helps both sides reach an agreement. In addition to representing parties, we at Karen Ann Ulmer, P.C. also mediate disputes between divorcing couples. 

Do You Want Legal Representation? 

The answer should be yes. If you’re of low income and have few assets, you may qualify for help from a legal aid organization to help you and your spouse divorce. Otherwise, contact our office. Your situation may be much more complicated than you think, and your spouse’s proposals may not be as reasonable as they appear. You must understand your rights and protect them during a divorce. A mistake made when you do it yourself may haunt you for the rest of your life. 

The attorneys at Karen Ann Ulmer, P.C., can answer your questions and represent you in your divorce, no matter which approach you take or how it’s resolved. Contact us today to see how we can help you.  

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Congratulations! Your Divorce is Final! Now What?

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A divorce starts a new chapter of your life. But even after it’s final, your life will not turn on a dime, especially if you share children with your ex-spouse. There will be loose ends to tie up and details to address. Where do you start? 

What’s in Your Divorce Agreement? 

The divorce agreement is part of your divorce order. It will require you and your spouse to do certain things by given dates. Some things are time sensitive, like changing property titles and deeds. 

Compile a list of what needs to be done and when, and calendar each task. You must honor your end of the bargain and keep track of your spouse’s obligations, so if they miss a deadline you’ll know about it.   

If you have a qualified domestic relations order (QDRO), it’s a court order that may require one of you to share your retirement savings with the other. It’s often part of the process that divides spouses’ assets, and their requirements are time-sensitive. 

Will You Need Health Insurance? 

Unless you’re old enough for Medicare, have health insurance from your employer, or already purchased it yourself, you’ll need health coverage. If you got it through your spouse’s employer, you could continue it through the COBRA process for up to three years. This is probably pretty expensive, so you might just want it to be a bridge to more affordable coverage. One option may be an Affordable Care Act (ACA) plan or a policy you buy from an insurance agent. 

If you have kids and your ex-spouse gets medical benefits from work, maintaining that coverage is probably the best option. If not, COBRA or the ACA may be good options. 

What’s Your Credit Score? Is it Getting Better or Worse? 

Protecting your credit score will allow you to borrow money and get lines of credit at the lowest interest rate possible. Here are post-divorce steps you can take, according to AARP: 

  • Close joint accounts: Your ex-spouse may run up debts and be late with payments or not pay at all. Inform creditors of your divorce and that you’re not responsible for further debts. 
  • Get monthly statements: If joint accounts have outstanding balances, these statements will show you’re making timely payments. 
  • If you move, file a change of address notice with the U.S. Postal Service: If you don’t get a bill, you won’t pay it, and that will harm your credit score. If you pay bills online, getting monthly statements or changing your address won’t be issues. 
  • Use credit cards wisely: Don’t engage in binge “retail therapy” shopping if you feel depressed. You’ll only feel worse when you get the bill, and your credit score will suffer if you don’t make payments on time. 
  • Regularly check your credit reports: See if there are any errors or problems caused during your marriage or divorce. Take action if you find them. 
  • Freeze your credit files: Given your spouse knows your Social Security number and other critical information, you may fear they may engage in identity theft. If so, a credit freeze should prevent any new accounts from being opened in your name 

Be proactive because preventing financial problems is easier than unwinding them after they happen. 

Have You Updated Your Estate Planning? 

If you had estate planning done during your marriage, you likely named each other as your primary beneficiaries. You probably don’t want your assets going to your ex now, though you may feel they can handle being a trustee for a trust that benefits your children. Make sure your estate plans accurately reflect your wishes.

Is Your Divorce Over, But You Still Need an Attorney? 

We will fight to protect your interests and work to ensure you’re in the best position possible after your divorce is final. Contact Karen Ann Ulmer, P.C., Attorneys at Law, for a free consultation so we can discuss your situation and how we can help. 

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