Peaceful Divorce

Things That We Don’t Think About After Getting Divorced

Financial issues are a big part of the difficulty of divorce. Being able to identify them can take away some of the pitfalls, stresses, and surprises. Foremost on your mind should be evaluating important post-divorce items such as cash flow and putting together a spending plan.

Here are some of the biggest issues that clients tend to forget about after they are done with their divorce:

  • Review your investment portfolio: Consider what your tolerance for risk will be in your post-divorce life. For instance, you may decide you should be invested more conservatively than you were in the past.

  • Update insurance coverage: Check your life insurance policy to see who is the owner and beneficiary(ies). Update your information on your longterm care and disability insurance, too -- if you want to avoid any surprises in the future.

  • Retirement plans: What is the value of your 401(k) or IRA? who is the beneficiary?

  • Review charitable giving: As a couple, you may have made some compromises on the shared goals of your charity work. As a single person you may want to redirect your energies into something that is your personal priority.

  • College funding: Does the new structure of the family include a plan for paying tuition?

The most important thing to know about living post-divorce is that laws take precedence over your divorce decree. You and your spouse may stipulate certain changes to your existing legal documents in your divorce decree, but if those changes are not executed separately from the decree, they will have no legal weight.

Such documents include:

  • Estate plans: Changes as to who are the trustees or guardians of your estate and your children must be made in separate, legally binding agreements that activate the conditions of your divorce decree - not the other way around.

  • Power of Attorney and Durable Power of Attorney: People often overlook powers of attorney, but that does not detract from their importance. These vital documents need to be drawn up by a professional, separately from your divorce decree. Remember: The law takes precedence over your divorce decree.

  • Healthcare proxy: A healthcare proxy makes healthcare decisions if you are unable to make them yourself. If you were in a coma, who would you want to make those decisions at the hospital? If you rely on your divorce decree instead of the law, it might be your ex-spouse.

  • HIPAA authorizations: The federal privacy law known as HIPAA is something medical professionals take seriously. Under HIPAA, hospitals are required to refuse to give out information on a patient to any third party, without explicit, written permission. HIPAA completely overrides any agreements stipulated in a divorce decree alone.

Speaking to a financial expert like a CDFA or CFP about the financial issues, is the best way to ensure that whatever arrangements made in your divorce decree are official and permanent. What questions do you have about the state of your estate?


Views: 20


You need to be a member of Peaceful Divorce to add comments!

Join Peaceful Divorce

Become an affiliate of the Happily Divorced! book and audio program! Let Reformed "Killer" Divorce Attorney, Cynthia Tiano, and Dr. Max Vogt, Marriage and Family Psychologist, take you on an adventure into the lives of two families going through the divorce legal system - one doing "legal battle" and the other creating a "peaceful divorce". Learn how to create a Win-Win from their experiences...


Latest Activity

Robert D. Bordett, CFP, CDFA posted a blog post

What Is a Caucus?

One of the guiding values in mediation and collaborative law is transparency. It comes with the territory when one is trying to establish trust with two different parties. Sometimes an issue may arise that one party may wish not to discuss in front of the other. If they both agree, separate meetings may take place. These meetings are called caucuses.Caucuses can be…See More
Oct 22, 2019
Robert D. Bordett, CFP, CDFA posted a blog post

How Important Is the Budget in Divorce Planning?

I think everyone’s least favorite word is BUDGET. Why don’t we want to hear that word? Think about it: We’re asking ourselves to do something we don’t want to do — or worse yet, someone else is asking us to do it. While we might not like them, having a budget does help. In divorce planning — whether you are going to litigation,…See More
Sep 18, 2019
Robert D. Bordett, CFP, CDFA posted a blog post

21st Century Parenting Plans

I remember when the default custody arrangement had one parent as the custodial parent, and the other parent was known as the “Disneyland parent.” They had their children every other weekend, and maybe once during the week for dinner. Today it is more common to see joint parenting time consist of one week on, and one week off or “two-two-five-five” time,…See More
Aug 15, 2019
Robert D. Bordett, CFP, CDFA posted a blog post

Including a Financial Professional in Your Mediation

Very often, couples who are divorcing amicably, or who have straightforward financial situations, will forgo meeting with a financial professional while they go through mediation. Though this may seem logical on its face, “going it alone” may result in unnecessary hardship and inaccurate calculations.  It is easy to simply look at a tax table today and say “I am going…See More
Jul 30, 2019
Robert D. Bordett, CFP, CDFA posted a blog post

What About the House?

Going through divorce means dealing with hundreds of details, some more important than others. One detail that merits extra contemplation is how to deal with the marital home.Does one spouse want to keep it because the children still live there? You don't want to disrupt their lives any more than is already happening. What if the children are grown? Do you still need that much of a house?Here are the three most common means of dealing with the house in divorce:Selling the house and dividing the…See More
Apr 24, 2019




© 2020   Created by Cynthia Tiano, Esq..   Powered by

Badges  |  Report an Issue  |  Terms of Service