Finalizing Your Divorce

Q:        My spouse and I went to mediation and reached an agreement.  Are we divorced?

 A:        No, you are not divorced.  In order for your divorce to be final, the Court must sign a document called a Decree of Divorce.   Your attorney or your spouse’s attorney will prepare a Decree that reflects the agreements you reached at mediation.  Once you, your spouse and your respective attorneys have signed it, either you or your spouse will go to court with your respective attorney and participate in what is called a “prove-up.”  This is a very short process in which your attorney will ask you a series of questions to “prove” that your divorce should be granted by the court.  Immediately following the prove-up, the judge will sign your Decree and you will then be divorced, even though, by law your divorce will not be final for 30 days.

 Q:        I have signed the Decree.  Is there anything else I have to do?

 A:        There are numerous other things that must or should be accomplished prior to finalizing your divorce.  What needs to be done depends on your specific case, but some of the things that are commonly done include: transferring car titles, executing a COBRA letter to continue  health insurance benefits after divorce, usually for the non-employee spouse, signing a QDRO to divide retirement benefits, and signing a Deed to transfer title to your house.

Q:        What is a QDRO and why do I need one to finalize my divorce?

 A:        A “QDRO” is a Qualified Domestic Relations Order which is prepared in accordance with the plan administrator’s requirements for certain retirement plans.  Federal law requires that a QDRO be signed by the Court for the transfer of certain retirement assets from one spouse to another in a divorce.  Different plan administrators require different formats for QDROs, but all QDROs must be prepared exactly as the plan administrator requests and as required by the plan or the QDRO will be rejected and the retirement assets will not be transferred.  That is why it is a good idea to get approval of the “form” of your QDRO from the plan administrator long before your divorce is finalized.

Q:        Why do I need COBRA to stay on my spouse’s insurance policy after divorce? COBRA benefits are very expensive!

 A:        Your spouse will not have a choice about whether you can remain a dependent on his/her insurance policy after divorce.  The health insurance provider will not permit an ex-spouse to remain a dependent.  Your choices for health insurance after divorce are to obtain new, private benefits in your own name or send a  letter to your spouse’s employer specifically requesting that you be provided information about continuing your health insurance coverage under COBRA.  During the case or as a part of finalizing the divorce, the  attorney should identify the name and address of the plan administrator and obtain information about the existing health insurance policy in order to prepare the COBRA letter.

Q:        Why do we need to pay an attorney to prepare a Special Warranty Deed? 

 A:        If you and your spouse have agreed to sell your house and divide the net proceeds after your divorce, the title company closing the sale will prepare the Deed that needs to be signed in order to transfer title. However, if the house is awarded to you, not your spouse, usually a Special Warranty Deed needs to be executed by your spouse in order to convey your spouse’s interest in the house to you. Otherwise, following the divorce, you will both remain as owners of the house.

Q:        My spouse agreed for me to keep our family printing business which is set forth in the Decree.  Is the Decree enough to prove that I am the owner now?

 A:        Your printing business is what is called a “closely held business.”   If it is incorporated, your spouse will need to sign his/her shares of stock over to you at the time the divorce is finalized.  If the business is a partnership or limited liability company, assignments or other transfer documents will need to be executed by the spouse who is relinquishing his/her interest in the business .  The divorce decree in and of itself is not sufficient to accomplish the transfer of a business interest. 

Q:        What has to be done to transfer title to my car?

A:        Generally, your spouse will execute either the actual title to your car over to you or your attorney will prepare a “Power of Attorney to Transfer Motor Vehicle” for your spouse to sign as a part of the divorce closing documents.

Q:        How do I change my name once I am divorced?

A:        The Decree will contain a statement that orders your name changed.  You will need a certified copy of the Decree to show the social security office that the name on your social security card should be changed and to show the Texas Department of Public Safety that your driver’s license should be changed.

Q:        Is there anything else I should do as a part of finalizing my divorce?

 A:        Yes.  If you have moved as a result of your divorce, you should notify your creditors and others of your new mailing address.  While most people will file a change of address with the post office, it is better practice to write letters to all creditors and other interested or necessary parties setting forth your new address.

       You should check your credit report periodically to ensure that your spouse has not taken out credit in your name or established a new account jointly with you.  This is something that happens periodically during or just after divorce, so it is always a good idea to monitor your credit report to safeguard against this type of problem.

     If you have children under the age of 18, you should keep a certified copy of your Decree available to show the children’s school, physician, or even the police if requested or necessary.