Your Finances During a Divorce

There are some common mistakes that divorcing people make and these can have serious financial consequences what is a commercial issue later on. A mistake that some people make is being a financial victim in a divorce.
This often happens to people who take no interest in the marriage finances and have no idea of the assets and debts that they have. If there are a lot of assets that they don’t know about, their spouse could walk away with a much larger share because many holdings will be left out of the settlement. A person family law divorce can also suffer if there is a lot of unknown debt, because under divorce law each spouse may be equally responsible and a person could find they owe money on credit cards and loans that they were unaware existed. It is critical to consult with a lawyer who knows current law regarding finances in a divorce.
The first step any married person should take, whether they are facing a divorce or not, is to become familiar with their shared finances. They should know all the bank accounts, such as savings and checking, and the current amounts. They should know about investments like stock holdings and bonds, and whether they are held jointly. They will also want to find out how the dividends are received, if they are sent as a check or reinvested into new stock purchases. It is also important to know about the spouse’s pension plans because under divorce law spouses may have equal rights to the pension. These areas can get complicated and a good divorce attorney should be able to help their client understand their legal rights to financial holdings in a marriage.
Even if a person is unfamiliar with the financial holdings in their marriage they can still avoid becoming a financial victim. As soon as they get a feeling that their spouse may be planning a divorce they need to create their own file of the couple’s financial records. This includes all bank statements for accounts and investments such as certificates of deposits. They need copies of all stocks and bonds, and any statements sent by a stockbroker. Other records to copy are state and federal tax returns, charge card statements, and real estate contracts. Basically they will need copies of any records that relate to the finances of the marriage and could be used to determine a settlement under current divorce law.
This file of data can help the divorce attorney protect the client in court and stop the other spouse from emptying accounts or liquefying assets. Getting to know every facet of the marriage finances is the first defense in avoiding becoming a financial victim in divorce.

READ  Chapter 13 Vs Chapter 7 Bankruptcy: Differences