How To Keep Money Separate During a Divorce
Divorce is sometimes inevitable and in the best interests of everyone involved, including the children. Organizing your finances, whether you are still living together or contemplating a divorce, is always a wise decision.
If you and your spouse have decided to end the marriage, it is time to take all the necessary steps with advice from a skilled divorce attorney regarding the separation of finances to minimize conflict and potential losses. An experienced divorce attorney can recommend ways to keep your money separate and help with various other marital property division matters to ensure a seamless divorce.
Separate Your Credit Cards and Bank Accounts
The first thing you need to do towards separating your finances before a divorce is to maintain separate credit cards and bank accounts. This will make sure that any income and debt you accrue moving forward are separate. Account division should be on a percentage deemed fair by you and your spouse. This can be on earned income or individual responsibility.
If you and your spouse are unable to come to an agreement, you may want to bring in outside support through a formidable and highly prized divorce attorney. At this point, it is best that you close any joint credit cards you both have together. It’s vital to remember that you are financially liable for any joint debts even if it wasn’t you that racked up the bills.
Separate Non-Marital Assets
Non-marital assets are comprised of personal property owned by a spouse before the divorce. You need to make a list of everything that you own individually. This can include collectibles, vehicles, equipment, furniture, property, and stocks among other things. Non-marital assets include those gifts as well which you receive from a third party or through inheritance.
You will be able to save time and money in the future by creating a detailed list of these assets. Make sure any new income that you get is credited to your separate bank account and not the joint account. This can be income from employment or direct deposits. It may feel dramatic to revoke your privileges and remove all your cash. This is an important step if you don’t want to be picking up the pieces later on.
The primary cause of financial cause following a divorce is when spouses don’t separate their non-marital assets and continue to place all income in a joint bank account. It’s best that you untie your accounts as the first step toward unraveling your marriage.
Divide the Debts
It can be tricky to divide individual debt. In relation to this, you can begin the process of dividing debt by separating individual non-marital assets. This can include your previous car loans, student loans, and consumer debts from specific cards. You should get an attorney involved as soon as possible if there is marital debt, such as from a mortgage or a bathroom renovation. Your attorney will help you divide the joint assets and debt.
Your credit card company will not care about your divorce. You will remain liable for any debt accrued by your spouse if it is jointly held. You should make all efforts to leave your marriage without any debt or debt that only belongs to you. If there is an outstanding balance on any jointly held credit card, you should pay it off and close the account before initiating the divorce.
You can always divide the debt equally or equitably and transfer it to individually held cards. In any case, it is important that you close all joint accounts. This is important even if there is a verbal agreement to pay. There is really nothing you can do once your partner decides to ghost you, leaving you to pay the balance.
Protect Your Savings During an Alabama Divorce
It is always smart to have a separate account for your personal savings. This is even if you have a happy relationship. If you fund your personal account with your own savings, your spouse cannot lie a claim to it. Keeping money in joint accounts is a recipe for drama. You will have a lot of trouble separating it during a divorce.
You should also get in touch with an experienced family law attorney who can help you with alimony and child support. They can identify the costs and considerations that should be covered by spousal support. Most parents miss out on including extracurricular activities, such as college funds and sports equipment. You may have to get a fresh court order for supporting these additional expenses.
You can transfer money to your own account before you get divorced. Pertaining to this, this is a delicate process and one that should not be undertaken without professional guidance. You should consider transferring a certain amount of funds to a separate account if you are worried about your spouse emptying the joint accounts.
Get Legal Representation from Experienced Divorce Lawyers
The reliable and resourceful divorce attorneys at the Smith Law Firm go above and beyond to defend client assets in a divorce. You can count on us to safeguard your financial future and provide strategic legal advice on other matters pertaining to family law. To request your free and confidential consultation with us, give us a call at 334-377-1674 or write to us online.
