TomorrowMakers

A divorce can be a painful exercise, irrespective of gender. However, not taking care of money matters could spin an already bad situation from turning into a financial disaster. 

Being mindful about making the right moves when it comes to money can go a long way while going through the difficult experience of a legal separation process. Financial stress should remain the least of the worries for you at this juncture. It can be quite helpful to you to have a concrete plan in place here. 

Here is how you can finally protect yourself in a divorce:

• Establish Your Divorce Legally

The separation should be put in writing and put into motion as soon as possible after a decision to divorce is made. In this way, any money you make on that post will be protected. Let us take an example, suppose you’re separated from your spouse for the period of six months before divorce proceedings begin. In this scenario, all of that income will solely be yours. In the event of a separation that isn't legally binding, though, then that cash may become a contentious issue between the parties. Also, here matters like child support and alimony are of high importance. 

• Check Your Credit Score And Monitor Credit Card Activity

To rule out any financial irregularities, it's important to obtain a copy of your credit report and scan it to rule out any financial irregularities. Keep a check on your credit score. Try to keep track in the report for any errors and take into account that the other individual’s actions don’t affect your future in the long run.

Also read: Taking Charge Of Your Credit Score

• Check For Debt To Protect Your Assets

It needs to be taken into consideration that once the decision to go the separate way is undertaken, it’s best to leave marriages with no debt apart from the ones that only you need to pay. If there is any debt on your joint credit cards, pay up and close the accounts promptly. 

• Move Half of the Joint Accounts to a Separate Account

It is advisable to open a new bank account and transfer a substantial percentage of the available funds to the new account. Besides, corrections are incorporated when it comes to income from employment or other applicable direct deposits in the new account. 

• Conduct A Cash-Flow Analysis

Considering that now you are leading a solo life, appropriate preparation needs to be undertaken in this regard. Conducing a budget cash-flow analysis could help in keeping things under control when it comes to finances. Certain expenses such as health insurance or any subscription fees need to be suitably considered. 

• Don’t Relinquish Control Of Your Assets

As soon as the decision to separate is undertaken, protecting your investments and assets, including real estate, investments, or any other assets should be initiated immediately. It is important to retain greater control to ensure greater financial certainty. 

Also read: Real Estate: Is This Is A Good Time to Buy A House

• Plan For Your Taxes

Splitting up has tax repercussions that must be considered. Besides, alimony also needs to be considered. Also, considering that you would be a single person, it is important to review your filing status as well. 

Conclusion

Thus, it is very important to take reasonable steps in order to safeguard your finances and interests. If needed, do not hesitate to seek legal advice.