When relationships are in transition, they can affect many aspects of your life, including benefits. Take some time to determine if and when you need to make changes. If you have health care coverage, you generally have a limited number of days after the divorce to change benefits, so don't miss the deadline. Otherwise, you must wait for the next open enrollment.

Here are some steps you may take:

• Notify MMBB of the impending divorce as soon as possible. MMBB can provide sample language for domestic relations orders that may prove helpful. Note that MMBB will only provide information about your accounts to other parties if you sign a release authorizing us to do so.
  
  
• Learn how the divorce may affect your retirement benefits.
  
  
  • If you become divorced before all your benefits have been converted to monthly income, part or all of your remaining accounts may be assigned to your former spouse by a court. The MMBB compliance area can assist you if you are served with a domestic relations order to assign part of your retirement plan benefits to your spouse. If your divorce settlement calls for benefits to be divided, it is best to divide by percentages rather than dollar amounts. Once an account is divided, your former spouse has options for receiving his or her portion.
    
    
  • If you become divorced after you start receiving monthly income in the form of a joint annuity payable to you and your spouse, your divorced spouse will remain the joint annuitant and will receive income for life. A court order called a Qualified Domestic Relations Order (QDRO) generally assigns a percentage of annuity payments and account balances.
    
    
  • If a divorce and domestic relations order are pending but not finalized, you may take a loan or withdrawal from your account, but you will need your spouse's consent to take a loan because your spouse is automatically your primary beneficiary.
    
  
  
• If you had been covering your spouse under your MMBB-sponsored medical and dental benefits, you may wish to drop your spouse from coverage. If you do, your spouse may be eligible for continued coverage for a limited time. Just as a court-ordered QDRO can split your retirement benefits, a court may require you to cover dependents under a medical plan with a Qualified Medical Child Support Order (QMCSO).
  
  
• Determine which of you will cover any children for health and other benefits and make the appropriate changes. If you drop their coverage, your children may be eligible to continue coverage for a limited time.
  
  
• Adjust contributions to your health care flexible spending account (FSA). A health care FSA lets you set aside pre-tax dollars to pay family health care costs not covered by another plan. Your divorce may make you responsible for either more or fewer expenses.
  
  
• Adjust contributions to your dependent care flexible spending account (FSA). A dependent care FSA lets you set aside pre-tax dollars to pay eligible dependent care expenses for a child under age 13 or a disabled adult. Your divorce may change your dependent care needs.
  
  
• If you carry personal insurance, consider adjusting your life insurance and accident insurance amounts as needed. You may wish to revisit any dependent life insurance coverage. And you may want to check into long-term care insurance.
  
  
• Contact your employer to change:
  
  
  • Your marital status
    
    
  • Your name or address if they are changing
    
    
  • Your dependents
    
    
  • Your emergency contacts
    
    
  • Your tax withholding
    
  
  And don't forget other records, such as Social Security, your car registration, your bank, the Post Office and more.
  
  
• Change your beneficiary designations as needed for life insurance and retirement programs to be sure they are up-to-date. If you're not sure who you've named, you may wish to submit updated beneficiary forms for your MMBB benefits.
  
  
• You'll certainly want legal assistance for the divorce. You may also want to speak to your lawyer to create or change your will or other legal documents, or to discuss beneficiary designations and trust or guardianship arrangements. You may also want to revisit your estate plan.
  
  
• The Tools section can help you model the effect your divorce could have on your future savings needs and how much you want to set aside for a health care flexible spending account or a dependent care flexible spending account.
  
  
• If you remarry down the road, this will probably not affect your former spouse's rights under the previous court order.
  
  
• If your former spouse remarries at some time, check with MMBB because this may affect the terms of the domestic relations order that split your account.
  
  
• In times of change, be sure to take care of yourself. Watch your nutrition and exercise, and get help when you need it.