Important Financial Issues to Keep in Mind When Getting a Divorce
Getting married provides us with the opportunity to start a family and celebrate true love. Unfortunately, sometimes things don’t work out the way we initially planned for our marriage. The good news is that you can always pursue a divorce if you feel like it’s the right thing to do for your life. There are plenty of things you’ll need to consider if you are getting a divorce, especially from a financial perspective. That’s why it’s always a great idea to hire a great divorce attorney like the experts at The Johnson Law Firm & Associates to help you navigate the legal process. Below, we’ve created a list of some of the most important financial issues to keep in mind when getting a divorce. After reading this list, you will have a much better idea about what will happen financially after you complete the divorce process.
1. Impact of the Legal Separation Date
One of the most important financial issues to keep in mind when getting a divorce is the legal separation date. This is essentially the date that determines when your financial life with your spouse ends. Any property or assets that you acquire after the legal separation date are yours and yours alone. You should always try to establish a legal separation date and avoid living with your spouse before finalizing the divorce, otherwise, you can end up making your divorce a lot more complicated.
2. Prenuptial Agreement
There are plenty of people that never want to consider getting prenuptial agreement when they are getting married because it might be thought of as unromantic or stingy. However, a prenuptial agreement can save you lots of time and money in the event of a divorce. One of the most important financial issues to keep in mind is whether or not a prenuptial agreement is in place. If you did pursue a prenuptial agreement, you are likely to have much smoother divorce proceedings and will retain separate ownership of your property.
3. Looking into Joint Bank Accounts
it’s fairly common for married couples to have joint ownership of bank accounts. That’s why looking into joint bank accounts makes this list of the most important financial issues to keep in mind when getting a divorce. If you do have a joint bank account, any money deposited into the account before the divorce proceedings will be considered as marital property by the court. Opening a separate account in your name will not be subject to property division during the divorce. Keep this in mind if you and your spouse have several joint bank accounts!
4. Think About Credit Cards
Another important financial issue to consider during a divorce is credit card debt. Keep in mind that both debts and assets will be considered during the divorce process. If your spouse continues to rack up credit card debt before the divorce proceedings, you could end up having to pay it. Make sure you understand how your state and local divorce laws deal with debts to avoid unpleasant surprises during your divorce proceedings.