Unfortunately, when a couple decides to divorce, there is often one person who is clueless about finances. They may not have paid the bills during the marriage. They may not know what accounts they have as a couple. They might not know anything about the mortgage, car payments, utilities, and other bills. They may not be aware of retirement accounts.
This is a bad situation to be in. By not being aware of your marital finances, you open yourself up to a less than ideal financial situation after divorce. Here’s how to protect your finances before a divorce happens.
Once you and your spouse decide to divorce, separate your money from joint accounts. Keep track of everything you spend money on, as this will help you should your case go to court. Plus, it’ll help you create a budget.
A financial advisor can assess all your assets and determine what your next steps should be. They can take a look at all the variables involved and help you get a good settlement from the divorce.
When you and your spouse are joint owners of a bank account or credit card, the rules for removing one person may vary. You may be able to simply remove one person in some cases, but more than likely, you’ll have to close the joint accounts and reopen them in your name only.
If your spouse has health insurance, will you be able to stay on it after a divorce? If not, how will you get insurance? Don’t try to go without it. Insurance can be a literal lifesaver if you are seriously ill or injured.
Credit scores often plummet after a divorce. That’s because one party is often expecting the other to take care of the bills. Or you may give your spouse the home in a divorce, but he or she isn’t paying the mortgage, which can impact your credit. You may still be on the hook for your ex’s bills, so you may have to pay them or get the right orders in place so your name is removed from these accounts.
Your tax situation may change after a divorce. Take a look at the assets you’ll be receiving (such as a home or retirement account) and see what your tax liability will be.
Finances often change dramatically in a divorce. Make sure you are aware of all your accounts and options so there’s less stress about money once your divorce is finalized.
The Columbia divorce lawyers at the Law Offices of Todd K. Mohink, P.A. can help you understand your options once you end your marriage. We can help you deal with all the legal and financial components. To schedule a consultation, fill out the online form or call (410) 774-5987.
7310 Ritchie Highway, Suite 910
Glen Burnie, MD 21061
30 Corporate Center
10440 Little Patuxent Parkway,
Columbia, MD 21044