How to protect your finances during a divorce

On Behalf of | Mar 8, 2021 | blog, divorce | 0 comments

Everyone who goes through a divorce in Kentucky experiences drastic changes in their finances. Going from two incomes to one can be challenging. Once the smoke clears, you’ll want to be in good financial shape.

With that in mind, here are a few tips you can use to protect yourself financially whenever you’re facing divorce.

Evaluate your current financial situation

The day-to-day divorce process can seem all-consuming. While you’re working through who gets what, be proactive about doing some prep work about how you’ll live the solo life. Make a list of every asset you own, which could include your:

  • Bank statements
  • Investment statements
  • Credit card statements

Obtain copies of all of these documents to determine exactly how much income and debts you and your spouse have.

Open your own bank accounts

Most couples have joint bank accounts. Whenever you divorce, it’s a good idea to open a new checking and savings account in your name only. As soon as you open a new account, make sure you communicate with your soon-to-be-ex about how much money you’ll be transferring to it. This could help to avoid a future accusation that you’ve taken more than your fair share.

Close your joint accounts

If possible, pay off and close any joint accounts that you share with your spouse. Whether you have multiple credit cards, bank accounts or other assets, try to put them in either your name or your spouse’s alone. If you’re unable to pay off the accounts, talk to your creditors to find out what steps you can take to remove your name.

Whenever you go through the divorce process, your debts will have to be split during negotiations. The fewer joint accounts you hold, the less stress you’ll experience.

Divorce is hard enough. With careful planning and strategy, you can work to protect yourself financially in as many ways as possible.

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