While choosing to end a marriage that’s no longer working is always the right choice for everyone involved, it’s important to navigate a separation carefully. Divorce lawyers provide crucial counsel to help you avoid common pitfalls, including financial ones. The guide below provides a few tips to help you minimize the impact of the split on your finances.
How to Protect Your Assets During Divorce
1. Get Separate Accounts
Any assets you purchased with funds from shared accounts may be split during the divorce. If you sell an item you purchased with joint funds, such as a vehicle, you may be required to share the money with your soon-to-be ex. To ensure you can keep any new belongings you purchase, open checking and savings accounts in only your name. Only use funds from these accounts when making new purchases. while these assets may be considered martial and your spouse may have an interest in them, you are more likely to awarded those items in the divorce.
2. Cancel Joint Accounts
Much like assets, any debts you and your spouse accumulated during the marriage will be divided. Known as the rule of marital property, this means that any debts held by your former partner could become partly yours.
To keep the other person from accumulating more debt on your name, end any joint credit card accounts, memberships, and subscriptions. If you don’t want to close an account, reach out to the provider and remove the other person from the account.
3. Avoid Large Purchases
Divorce can take some adjustment if you previously relied on your spouse’s income. Avoid major purchases, such as new cars, during this transition and focus on saving. To ensure both parties receive a fair deal, the court may also request credit reports for both parties, as well as disclosure of bank accounts and credit card records.
If you’re considering divorce in Boone County, AR, turn to the divorce lawyers of Watson Law Firm of Harrison for legal counsel. This trusted firm helps clients achieve the best possible outcomes. Their divorce lawyers help with all steps of the process, including asset division, child custody, visitation, and alimony. Find out more about their practice by visiting their website, or call (870) 704-4037 to schedule a consultation.