How to approach your everyday finances during divorce
On behalf of Furr & Cohen, P.A. posted in Divorce on Sunday, April 13, 2014.
Each marriage is unique. As a result, you may have handled your finances in any number of ways during your marriage. However, regardless of how you and your spouse approached your financial situation, this approach will absolutely be impacted by your divorce. Therefore, it is important to understand a few key tips regarding how you will be approaching your everyday finances for the remainder of your divorce process.
Once your divorce settlement is finalized, you can treat your finances however you please, provided that your decisions do not defy your settlement agreement. However, there are certain boundaries you must respect in regards to your finances until the time that your divorce settlement is finalized.
For your own interests and protection, it is important to begin opening personal accounts. You need to reestablish your personal credit history apart from your spouse’s. In addition, it will benefit you greatly to have your own bank accounts and credit cards well in advance of your divorce being finalized.
However, it is not wise to make large purchases on these accounts without first consulting your attorney. Making large purchases while your property settlement is still being negotiated could be perceived as manipulative or worse by the court.
In addition, it is important to have a clear understanding of your assets, debts, income and expenses. Now is not the time to embrace financial ignorance, even though critically examining your finances can be a frightening process. In this situation, knowledge is power and will help you to make the best financial decisions possible for both your present and future.
Source: Credit.com, “How to Protect Your Finances in a Divorce,” AJ Smith, March 31, 2014