Post Divorce Division of Other Assets and Liabilities

Dividing assets and transferring accounts post-divorce is a critical step to ensure that all property is distributed according to the divorce decree. This process can include a variety of assets, such as bank accounts, retirement plans, real estate, investments, and personal property. Each type of asset may require specific steps to divide and transfer ownership properly. See the separate modules on the more complicated real estate and retirement divisions.  

Here is a general guide to the various assets that need to be divided and simple instructions on the procedures for their division or transfer.

1. Bank Accounts: Follow the divorce decree to determine each party’s share of the accounts. Close joint accounts and open individual accounts, transferring the agreed-upon funds to each party’s new account. You and your ex-spouse should be able to work together on these divisions directly with the bank. You should ensure all automatic payments and direct deposits are updated to reflect the new account details.
2. Investment Accounts: Follow the divorce decree to determine each party’s share of the accounts. Close joint accounts and open individual accounts, transferring the agreed-upon funds to each party’s new account. Contact the brokerage or financial institution to transfer the appropriate shares to each party’s individual account. You may need to provide specific instructions on dividing the specific holdings in each account to share the cost basis and any underlying tax implications (in kind transfers).
3. Vehicles: Follow the decree to allocate vehicles to each party. Complete the necessary paperwork to transfer the title with the DMV and ensure the vehicle’s insurance is updated to reflect the new owner.
4. Personal Property: Follow the decree to divide items and arrange for the physical transfer of items, documenting the process for clarity.
5. Debts and Liabilities: Follow the decree to determine which party is responsible for each debt. You should inform creditors of the division and ensure debts are transferred to the responsible party.

Here are some tips to help

• Develop a comprehensive checklist of all assets and liabilities to ensure everything is accounted for.
• Keep detailed records of all communications, transfers, and changes to avoid future disputes.
• Engage with attorneys, financial advisors, and tax professionals to ensure compliance and optimal handling of the division.
• Regularly check the status of transfers and updates to ensure all actions are completed timely.
• Periodically review the status of asset and liability divisions to ensure everything remains accurate and up-to-date.

Estate Planning

One final post-decree note. Estate planning after a divorce is a crucial step to ensure that your assets and wishes are accurately reflected in your new circumstances. It involves updating your will, power of attorney, and beneficiary designations to remove your ex-spouse and include new beneficiaries, such as children or other loved ones. Additionally, you should review and possibly revise any trusts, life insurance policies, and retirement accounts to align with your current intentions and legal requirements. Engaging with an estate planning attorney can help you navigate these changes and ensure that all documents are properly executed and compliant with state laws. Taking these steps not only protects your assets but also provides peace of mind that your estate will be managed according to your wishes in the event of your incapacity or death.

By following these procedures and tips, you can ensure a thorough and equitable division of assets post-divorce, aligning with the divorce decree and securing a stable financial future for both parties.