Car Accidents and Lawyers to Reduce Stress

Posted on: 7 December 2021

If you are in the midst of a divorce or are contemplating a divorce, protecting your and your children's financial security is an important consideration. Keeping your assets, including your retirement, investments, real estate, and the money in your bank account, safe is critical to prevent a financial disaster that could derail your future. Here are a few simple tips to help you protect your assets during divorce.

Hire an Attorney

First and foremost, hire an experienced divorce attorney to help you create a plan of action. Your attorney can help you understand your financial obligations during the divorce and how to ensure your financial future is protected.

Set Up a Separate Bank Account

If you have a joint bank account, remove your name from that bank account and reroute any direct deposits, such as your paycheck, to your separate bank account. If you have money in a joint account, work with your spouse to determine how to equitably distribute what you have in that account. If you are unable to do this, consult your lawyer.

Remember to reroute any direct payments, such as your car payment or cellphone payment, from your old bank account to your new, separate bank account. This will prevent any lapse in payment and ensure you don't incur any penalties.

Create a Detailed List of Your Personal and Shared Assets

Making a detailed list of your assets and debts will not only ensure you receive a fair distribution of your assets and your debts, it will help streamline and speed up the divorce process. Create a specific list based upon certain categories. For example, list your credit cards, retirement plan, and bank accounts under one category.

Another category is your vehicles, such as cars, trailers, or boats. Your higher-value personal items, such as fine art or jewelry, would be placed in another category, as well.

Monitor Your Credit Report

Unfortunately, despite your best efforts to be transparent about your finances and ensure you are not hiding any purchases or taking on any new debt that would be considered a shared debt by the court, your spouse might not make the same choices. Obtain a copy of all three credit reports to ensure you understand your debt and how it should be distributed. Additionally, continue to monitor your credit and if your spouse takes on any new debt in both your names, make sure to consult your attorney to ensure you are not liable for any payments.

Protecting your finances during and after your divorce is critical, which is why you need to create a plan with your divorce attorney.