Follow Through, Monitor and Assess
NOW THAT I AM DIVORCED, WHAT NOW?
After your divorce is final, you are now on a path towards a new life and an adjusted financial lifestyle. How smooth or challenging of a path will be a result of how the financial aspects of the divorce settlement are acted upon and followed through to completion and how well thought out a post-divorce spending and savings plan has been discussed, reviewed and planned.
In order for the agreed upon settlement to be most effective several areas should be addressed:
- Monitoring credit report
- Restructuring of your personal will or trust
- Changing beneficiaries on life insurance and retirement accounts
- Following through of the transfer of assets as outlined in the settlement
- Retitling of personal assets car, house, etc. and monitoring the transfers
- Opening personal financial accounts both checking, savings, and credit card
- Evaluating potential tax liabilities from the sale of assets and/or receiving of alimony and planning accordingly
- Structuring an investment strategy based upon new goals and income
- Management of current assets and liabilities
This is not intended to be an exhaustive list of post-divorce procedures or of potential tax implications. Every person’s situation is unique, and we always advise seeking the services of a qualified tax preparer on tax issues.
OTHER THINGS TO CONSIDER:
- How to handle your retirement plans such as IRA, 401(k), Pension.
- If there are transferred business interests, how to ensure certain tax attributes are not forfeited.
- What are the tax implications in property and/or investment transfers