Many would say that the most important aspect of a divorce is property division because how an individual spends the person’s life following a divorce depends largely on the financial resources at hand. Courts in Tennessee understand this concept and courts issue judgments that are meant to divide a couple’s marital property equitably.
The first important step to take after a divorce is to update all estate plans. Recently-divorced individuals must ensure that they update the names of beneficiaries in insurance policies, bank accounts and retirement accounts. Those individuals must also ensure that all funds transfers, such as 401(k) plans or pension plans, which are a part of the divorce decree, are completed within the stipulated time.
It is important to remember that most administrators of pension and 401(k) plans require a court-approved copy of a Qualified Domestic Relations Order, or QDRO, before they transfer funds from that account. In the event of a discrepancy, the administrators may refuse to initiate such transfers or divisions.
It is important to remember that obtaining a fair share of marital property is not the final task. Divorced individuals should develop plans about how the money received during divorce should be reinvested. While doing this exercise, individuals need to keep in mind that the money at issue may be subject to taxation. Therefore, they need to invest wisely and retain all necessary documentation.
Another major asset that divorcees need to address after a divorce is any property they may receive as part of the divorce settlement. The decision to retain or sell a house depends on a number of factors. Divorcees should make a decision after they have weighed all the pros and cons of retaining a particular property or selling it.
Besides these, divorcing couples often have to deal with a number of other issues, including the declaration of assets and discovery prior to divorce. During such times, people should make sure they understand their legal rights in order to receive their fair share of the marital property.
Source: Nasdaq.com, “To-Dos After Your Divorce,” May 8, 2015