Disentangling Your Finances After Getting Divorced: Best And Worst Practices
Romance drives mate selection these days, but at its core, marriage remains a financial arrangement. Even spouses with pre-nuptial agreements and separate bank accounts experience significant blending of their finances, to the point that disentangling after divorce can be frustratingly complicated. If you’re struggling to decipher your finances after divorce, keep these do’s and don’ts in mind:
Do: Gather All Paperwork and Determine Who Is Named On What
From car loans to life insurance policies, the names listed on your various forms of paperwork can tell you a lot about your current financial status not only as a couple, but as an individual. Gather all relevant paperwork, and make copies.
Don’t: Stick With Your Spouse’s CPA or Financial Advisor
If you require financial assistance, choose somebody who is not obligated or inclined to mention you to your ex-spouse. Separating your finances will be far easier if you and your ex- spouse or ex-partner work with separate professionals.
Do: Run a Credit Report
Some of your debt as a couple may be held jointly, and some may fall on the shoulders of just one spouse. Take stock of all loans, and then, run a credit report to determine which liabilities are currently in your name.
Don’t: Continue to Use Joint Accounts
If you have a joint credit card or some other joint account, cease use of it immediately. Request that your spouse do the same — and if he or she fails to do so, have the company freeze the account.
Disentangling your finances can be tricky, but once you’ve determined which spouse is responsible of each asset and/or debts, you can move forward with a clean slate. Keep that future fresh start in mind as you wade through the current financial complications of divorce.
From child support to property division, DiPietro Family Law can help you with the financial aspects of your divorce or separation. Get in touch with the Washington, D.C. family law firm to learn more about the financial implications of divorce.