Before divorce, it is important to get your finances in order. There are a number of financial considerations that you need to think about before divorce, both in terms of making sure you get a fair divorce settlement and in terms of making sure you are OK financially after the divorce. Read on to learn about some of the most important things to consider when it comes to divorce and your money and finances.
Important Financial Issues Before Divorce
Before you get a divorce, there are several things you should do including:
- Take an inventory of all marital assets. Every state allows for division of these assets using some formula- either community property or equitable distribution- and you want to make sure all assets are accounted for so you can get your fair share. If you suspect that your spouse is hiding money or assets, you can get a court order to compel him to turn over that information
- Learn the laws in your state. In a community property state, you are entitled to half of all property or money acquired during the marriage, with the exception of inheritances and personal injury judgments- unless that money was co-mingled with martial money, in which case you are entitled to half of that as well. In an equitable property state, you are entitled to a fair division of property.
- Refinance any joint debts. Many people make the mistake of believing that just because their divorce settlement says their ex is responsible for the debt, that they are off the hook. If your name is on the debt, then the creditors can come after you to collect and can damage your credit if they don't get paid- and your creditors don't care that you have a piece of paper that says it belongs to your spouse.
- Get your own credit and insurance. If you haven't handled the money in your marriage and you don't have a credit card in your name, you need to get one now. It is essential you build up your own credit. Likewise, if you were covered under your spouse's insurance for anything, you will either need to get your own policy or make some arrangement as part of the divorce settlement to stay on your spouse's policy for a period of time.
Getting Help
The best thing to do before divorce is to talk to an experienced and professional divorce attorney. Your attorney can help you deal with all the financial issues that arise before and during divorce and can help you to make sure you are protected financially when your marriage ends.
