Regardless of whether your divorce process is adversarial or cordial, it is a wise move to protect your assets. This article will highlight ten tips on how to protect yourself financially in a divorce.
- Evaluate Your Contributions. Look at your contributions to health savings accounts, retirement, individual trading accounts, etc. Talk to your attorney to seek advice about whether to continue to contribute to these accounts.
- Consider Your Estate Planning. Is your ex the beneficiary to any assets? Do they have the power to determine your health under a living will? Do they have power of attorney? These are important issues that can be inadvertently put on the backburner.
- Separate Assets. Do you have separate assets? For example, is there a bank account or property that you acquired before the marriage? If so, keep separate assets separate. Don’t comingle them during the divorce process as it might muddy the water.
- Get information about the tax consequences of alimony, capital gains on the sale of a home, etc.
- Change Your Passwords, Protect Your Privacy. If your ex has the passwords to any separate bank accounts, credit card, telephone accounts, etc., change the passwords immediately to protect your privacy. Also look to social media such as Twitter, Facebook, etc.
- Build Your Credit. Consult with your attorney about the advantages of taking out a credit card in your name only and starting a separate bank account.
- Consider Moving Out. The decision of whether to stay or go involves many factors including your time with children, finances, etc., so there is no one right answer on this one, but seek advice as to whether moving out is a good idea.
- Live frugally. Divorce can cause a financial strain on both parties, so attempting to live a little smaller than usual may help you in the long run. Try to cut spending where you can.
- Get organized. One of the best ways to protect yourself financially is to educate yourself on what you have and document it. Look in all checking, investment, and savings accounts to see what is there now and take screen shots to document. Get information and documentation on each party’s salary and other income. Find out how much debt you owe. The more you know about your money, the better off you will be in fighting for it.
- Keep records. If you aren’t one to keep financial records and receipts, now is the time to start this habit. Having records will help you verify facts and figures and will help protect your financial future.
