Congratulations! You're divorced. Can you file your Judgment of Divorce and forget it? Pour a drink and book your trip to the Caribbean? Not yet! Handle these important post-divorce follow-ups.
Change Beneficiary and Life Planning designations.
It is essential to change your beneficiary designations to reflect your post-divorce realities. The U.S. Supreme Court recently decided a case, Hillman v. Maretta, where the husband failed to change the beneficiary of his group life insurance policy from his ex-wife to his new wife. Because she was his beneficiary, the ex and not the widow received the benefits. See the decision here. To prevent unexpected disasters, update all life insurance policies, including those securing support agreements, retirement plans, and traditional pension plans. Do not postpone updating your will, powers of attorney, health care proxies and other life planning documents. Do not assume that the law provides for any automatic change.
Secure Continued or New Health Insurance Coverage.
Divorce is a qualifying event and upon divorce, a spouse covered on the other's plan may no longer have health insurance coverage. Through state or federal COBRA programs, the coverage formerly available may be extended for up to 3 years, for a cost. There are strict deadlines to alert the plan of your divorce, and to avail yourself of continued coverage under COBRA. Do not miss the deadlines and risk waiving continued coverage. Prior to the divorce being finalized, explore the cost of continuing coverage under COBRA, as well as alternative insurance options. Insurance may be available through private insurance plans, professional or trade associations, public health insurance, or self-employment organizations such as http://www.freelancersunion.org.
Name Change with DMV and the SSA.
Alert the DMV if you have resumed a prior surname. Let the Social Security Administration know of your new status as well. Bring your Judgment with you; it will have a clause permitting your name change.
Keep Tabs on the Paperwork.
I had a client who had filed her paperwork after she thought she was divorced, and assumed that it had been handled properly. 10 years later, weeks prior to remarrying, she discovered that her divorce had never been processed. She had to retain me to scramble and get her divorced before her wedding. Obtain and keep a complete and official copy of the Judgment of Divorce, as well as the agreements and findings upon which it is based. This is necessary if you want to remarry, upon the death of either party, or for revisiting any issues of the divorce, including a default or breach of your agreement, or issues of support or custody.