Even in the best of circumstances, divorce can be a challenging financial and emotional process. Finances are one of the most common things that cause conflict in a marriage, and these issues can escalate when you’re going through a divorce. The divorce attorneys at Thomas, Conrad & Conrad offer advice on how to manage your finances in a way that can protect your financial stability and your credit.
Take A Look At Your Assets And Debts
Getting a clear picture of your financial situation can give you peace of mind and help you develop a strategy for managing finances during your divorce. After gathering all pertinent information, you’ll need to go over it with your family law attorney so they can advise you on how your finances may be split.
They can also offer suggestions on what you can do to protect your financial health and credit before and after your divorce is completed. Knowing what you are dealing with financially is critical, especially if your divorce is contentious. Gather the following items:
- Bank statements for all checking and savings accounts
- Credit card statements
- Bills
- Childcare and education expenses
- Mortgage statements
- Vehicle loan statements
- Investment portfolio information
- Income information, including pay stubs W-2s, tax returns, and any other income sources you may have
- Debt and liability documentation
- Retirement and pension contributions and account statements
- Deeds and titles to property such as real estate and vehicles
- Life insurance policies
- Trust accounts
- Will
Anything related to your joint or individual finances should be included. You are both required by law to provide full disclosure of all assets and debts, including cash.
Try To Work Together
Each situation is different, but if you are able to sit down with your spouse and take a look at your monthly income and bills, it will be easier to gauge how much money you’ll need to maintain your current lifestyle.
Regardless of whether you’re still living together, this can make things easier later in the divorce process. If you’re unable to have a civil discussion with your spouse, it’s best to have your attorney handle any communications. If you’re unsure about how to handle certain financial matters or have any questions related to spousal or child support, call your divorce lawyer for advice.
Update Bank Accounts
Most married couples have joint bank accounts, which are typically divided in your divorce settlement. It’s best to avoid withdrawing large amounts of money from any joint accounts, as it can come back to bite you when it comes time to split your assets. Open an individual checking account and start depositing your pay and any other personal income into it. Depending on the circumstances, you may be able to continue paying household bills and other expenses from your joint checking account until your divorce is finalized. If possible, discuss this with your spouse so there are no surprises on either side.
Monitor Your Credit Card Accounts
It’s common for divorcing couples’ credit scores to drop for a variety of reasons. Obtain a copy of your credit report and review it carefully. Federal law enables you to get a free credit report annually from all three reporting bureaus. This is a good way to discover all the accounts your name is attached to and help keep your credit score healthy. Unfortunately, some spouses and exes go on spending sprees to be vindictive, so it’s vital to make sure your credit isn’t damaged by this kind of behavior.
If you’re on good terms and seeking a divorce by mutual consent, separating accounts as quickly as possible can make the divorce process a lot less painful. Paying off any joint accounts if you have the funds to do so gives you one less thing to address when splitting assets and debts in your divorce. If you need to use credit cards during your divorce, open an individual account and use that if possible. If you do need to use a joint credit card during your divorce, only use it for necessities. You may end up being held fully responsible for any extravagant or unnecessary spending. It’s also good to notify credit card companies of your impending divorce.
Divorce can be costly. Now is a good time to closely monitor how much you’re spending and cut out things you don’t need. Saving will help free up funds for monthly bills, attorney fees, emergencies, and essential items.
Contact A Divorce Lawyer
If you’re considering divorce or you’re already in the thick of it, you don’t have to go it alone. The divorce attorneys at Thomas, Conrad & Conrad can help you understand how to manage your finances and protect your rights. To schedule a consultation, contact us online or call our Bath office at 610-867-2900. We’re proud to serve clients throughout eastern Pennsylvania.