Deadlines
Deadlines. When you’re going through a divorce, there are a lot of dates that you’ll need to be aware of. There are often things you need to get done by a certain date and others that you can’t do until after a certain date or event.
I am not an attorney, financial advisor, or CPA…so this information is only intended to give you an idea of things you may need to deal with…and would therefore want to remember to discuss with your attorney, mediator, CDFA, etc.
Many “important” dates have to do with your finances. There are specific procedures that must be followed to do things like split retirement accounts, pension plans, life insurance, and other types of financial accounts. A lot of times these procedures need to be done within a certain amount of time, or you could risk some of the benefits you were awarded.
Your tax return is another area that may be affected by dates and deadlines. Your filing status (married filing jointly, married filing separately, single, head of household, etc.) will be affected by not only the date your divorce becomes final, but could be subject to certain agreements made in your divorce agreement. Things like who claims dependents in what year(s) and whether that ability to claim them is subject to a certain stipulation (like being current in required child support payments) are often discussed in agreements. Read your agreement carefully and make sure to share the appropriate information with your CPA. This may not be the best time to try and do your tax return on your own. Some things are worth paying for and best left to the professionals.
Legal documents are a piece of the divorce “puzzle” that many people forget to deal with. Wills, Powers of Attorney, Health Care Proxy’s, and even insurance beneficiaries are things you are most likely going to want to change as soon as you are legally separated or divorced. No one plans for an emergency to happen…but happen they do, and if you haven’t updated your wishes, it can have serious consequences. And if you have children and don’t have a will at all….stop reading this and make an appointment with an attorney to draw one up, now!
I’ve heard stories from attorneys and financial advisors of beneficiaries not having been changed in a timely manner and money went to an ex-spouse rather than their children…or even an ex-spouse instead of a current one!
That P.O.A. you didn’t remember signing 20+ years ago when you were a young newlywed? If you don’t retract it….it could possibly be used to sign financial documents, checks, tax returns without your knowledge. Yes….it happens!
Moral of my story? Get yourself a notebook and make a list of everything that needs to be done, and when it needs to be done by. And if you don’t know something, don’t be afraid to ask.