I cannot tell you how often I have heard a client say these words, and while signing the Marital Settlement Agreement is a huge point in the divorce process, there is more to be done! Remember, your divorce is the first chapter in the rest of your life, not the last chapter of this part of your life. Let me say that in a different way (yes, it is that important to stress it again). YOU need to be YOUR biggest advocate in shaping the rest of your life (know your priorities, responsibilities, and create a strategy for beyond the divorce etc.). How you act during the divorce can impact an array of areas of your post-divorce life, including your financial wellbeing, relationships with your kids, co-parenting, your emotional wellness, and many others. Below is a crucial list of actions to do and not do, to consider before finalizing the MSA, and actions to do after the MSA is signed.
- Do Actions
- Focus on creating your life beyond the divorce as early on in the process as possible.
- Start or increase your selfcare activities
- Revise your budget to estimate what you need and what to ask for during the negotiations
- Notify any parties who may need to know of your divorce
- If you are on spouse’s healthcare, see if COBRA is the best option for you (you have three main choices)
- Make sure your kids are on the best health care plan option available under the circumstances (if applicable)
- Consult with your attorney on how to protect your cash and other liquid assets
- Speak to your attorney about protecting yourself against spouse increasing debt and credit card balances
- Disclose to your attorney what you want early on and if anything changes prior to finalizing anything
- Be organized and prepared (especially with attorney to keep costs down)
- Be organized and prepare for your financial and emotional wellbeing.
- Remember, this is the first chapter in the rest of your life, not the last chapter of this part of your life
- Remember, you need to be your biggest advocate
- DO NOT Do Actions
- Clean out the bank accounts
- Hide money
- Act fraudulently or dishonestly
- Act underhandedly
- Lie or deceive through discovery
- Let your emotions become the most expenseive part of your divorce
- Try to use the divorce to prove a point or get vindication – it rarely happens and it racks up your costs
- Misrepresent or lie on the affidavits and discovery
- Agree to anything you are not comfortable with or disagree with
- Let yourself be bullied
- Before finalizing the agreement
- Make sure you are able to perform all items required of you in the Marriage Settlement Agreement (e.g. often mortgage refinancing terms are entered into the MSA that cannot be met)
- Make sure you understand everything required of you
- Make sure you are not leaving yourself financially or emotionally destitute
- Understand each deadline and what is needed to complete that requirement
- Make sure you are in agreement with everything in the divorce agreement and parenting plan
- Make sure all items in the divorce agreement and parenting plan is what was agreed upon in the negotiations
- Make sure the terms and requirements are spelled out in “painful detail” and nothing is ambiguous or room to be misinterpreted
- After the Divorce is Final To Do’s
- Make sure all of the above is completed – there are many to do’s after the divorce is finalized
- Double check beneficiaries of policies and accounts have been changed
- Make sure your updated will reflects your new situation (financial, new name, beneficiaries, power of attorney etc.)
- Make sure the judge has approved the marriage dissolution agreement
- Make sure you have several copies of the Divorce Agreement and Parenting Plan
- Make sure no accounts still have a joint ownership
- Finalize your budget once you have finalized everything
- Make sure the divorce agreement terms are carried out quickly (e.g. transferring of assets or executing QDROs)
- Update any automatic withdrawals or charges to the new accounts set up in your name only
- Make sure you are following all terms in the Divorce Agreement and Parenting Plan
- Make sure you are practicing selfcare
Hirsch Serman, MBA, CPA is the founder of Lifecycle Financial LLC, a company that helps those going through Divorce and other life cycle transitions to navigate the financial pitfalls of a new life dynamic. The company was founded through personal experiences in divorce and watching the changes in an aging parent. He has worked in finance for over 20 years (including financial planning and tax) and has taught on the university level as well as conducted seminars for high school youth on personal finances. Hirsch is a member of the National Association of Divorce Professions (The NADP), The AICPA, Continuity of Care, and the American Association of Daily Money Managers (AADMM).
Listen to Hirsch’s radio show The Financial Wellness Hour on www.facebook.com/SinglesTalkRadio
INC., US News & World Report, DivorcedMoms.com, DivorceMag.com, Better, The Memphis Business Journal, The Financially Independent Millennial, and Funding Sage media outlets have all covered his work in Divorce. Hirsch has a passion to serve others and has s numerous non-profit boards including the United Way and is a Trustee on the Board of Texas College. Please reach out with any comments to hirsch@lifecycle.financial.
