November 2, 2015

Preparing for Divorce: Getting Finances in Order

Divorce Finances

Finances during marital dissolution can be one of the most difficult aspects of the process, and many people fail to take appropriate steps in order to maintain financial security after the divorce is finalized. The most important step to finding financial stability after divorce is to speak with a qualified family lawyer, who can help you to navigate the most complicated separation of bank accounts, assets, and future financial plans. Yet there are several things any layperson can do to help lay the groundwork for financial success after divorce as well.

The first is to anticipate that divorce is coming. It may not always be possible, but if you suspect that your marriage is headed toward divorce, an easy way to begin taking your financial security into your own hands is to do exactly that — take it into your own hands. This may mean opening a separate bank account, credit card, or retirement fund, procedures that are especially important if you were not the primary breadwinner during the marriage.

Moving on with an independent life means having independent finances: Those that a bitter ex-spouse does not have access to and cannot touch. Alternatively, if you have joint credit cards, bank, brokerage, or investment accounts that you are planning to keep (of which you are the primary holder), you can remove your ex-spouse’s name from those accounts.

If you have already set up an estate plan with your spouse, removing his or her name from those plans is another crucial step to take to ensuring financial stability after the marriage is over. This may include writing a new will, executing altered living wills, and changing beneficiaries on long-term accounts such as IRAs and pensions. A less complicated step could be to set up a financial plan, a monthly budget, that sets a foundation for you to move on.

If you or someone you know is considering divorce, the importance of seeking legal counsel cannot be overstated. Do not go through it alone. Contact an experienced DuPage County divorce attorney today.