Three Steps to Protect Your Finances During Divorce

 Posted on January 31,2020 in Divorce

Divorce is stressful for a number of reasons, and adding financial struggles on top of everything can set people over the edge. Before couples begin the divorce process, they often expect things to be cordial and expedient. Things can quickly get ugly when the possibility of divorce becomes a reality. The division of marital properties and assets can bring out the worst in individuals with some spouses going so far as hiding assets or lying about their financial stability. Whether or not your spouse is involved in foul play, it is important to take additional measures to protect your finances during your divorce to avoid paying for it later.

Gather Your Records

Some divorcing spouses will take advantage of their joint financial accounts right before the divorce becomes official by buying expensive things or making large purchases, draining the account to keep the money away from their ex’s pockets. Obtaining documentation of the amount within all of your accounts before the divorce is a good way to protect your joint and individual accounts from these sort of actions. With the proper evidence, you can prove that your spouse’s spending habits have changed drastically throughout the divorce, jeopardizing your financial stability in the future.

Create Your Own Accounts

Many couples share all of their financial accounts, especially females or stay-at-home parents. While this connection may not seem problematic throughout your marriage, once divorce becomes a possibility, it can leave you reliant on your soon-to-be ex-spouse. One of the first actions that divorcing couples should take is to open their own bank account and get their own credit card. Not only will they begin building up their own credit, but they will also have sole control over the finances. Many divorcing couples will close their joint accounts at the beginning of the divorce process to avoid unfair spending or foul play.

Know Your Worth

It is important to have a good understanding of how much your assets and properties are worth, even if they are not money in a bank account. Since all of your assets and properties will be divided, it is crucial to know how much something is worth and determine whether or not you wish to have it at the end of your divorce. These can include your home, businesses, vehicles, artwork, etc. Oftentimes the value of your belongings will fluctuate from the day you purchased them, and knowing their value can keep you from being taken advantage of by your former spouse.

Call a Novi, MI, Property Division Attorney Today

While personally preparing for your divorce is important, an experienced property division attorney is the best person to turn to for help. At Elkouri Heath, PLC, our attorneys have more than 23 years of experience working with those getting divorced. We have seen the various tactics that divorcing spouses use to hide finances and leave their ex struggling. If you are filing for divorce and need help verifying the value of your assets, contact our Farmington Hills property division lawyers at 248-344-9700 for a free consultation.

Sources:

https://thriveglobal.com/stories/how-to-protect-your-personal-finances-in-divorce/

https://www.usatoday.com/story/money/personalfinance/2017/01/28/4-ways-protect-your-finances-during-divorce/97057688/