Divorce is one of the most prominent downsides to marriage. It is a point where both husband and wife have realized that their matrimonial union is no longer viable. Hence, this necessitates these proceedings to separate the two parties for good. Some divorce proceedings are smooth sailing; others are unwinding and induce a lot of headaches to both parties. First, children are usually affected psychologically and emotionally thanks to the realization that their parents must part ways. Some divorce proceedings are also energy sapping due to the efforts spent in pushing it through.
Nevertheless, the biggest nightmare to those entangled in divorce proceedings has to be that of finances. The main reason that such proceedings become laborious is the distribution of wealth or finances between the two parties. Most people hate the idea of losing a colossal amount of their finances to their spouses. Thus, these individuals would try hard to avoid such a scenario.
Protecting one’s finances during divorce proceedings
Relationships that are hostile and contentious are always bound to have complicated divorce proceedings. Both parties would want to reap handsomely from the proceedings without giving away much. The following techniques could be helpful in safeguarding one’s finances when undergoing a divorce.
When the divorce proceedings are ongoing, it is important to cancel any joint credit cards held by the spouses. This will prevent the other spouse from racking up huge debts by using the card haphazardly. Equally important is the need to close any joint accounts held with the spouse. This way, one party can avoid the problem of accumulating humongous debts resulting from the partner’s spending. Closing these joint accounts is necessary since all divorce decrees are inferior to other contracts. By accumulating huge debts, such individuals would have negatively affected their credits scores as well as ruined their finances.
Possession of detailed records
Having updated and detailed financial records is a necessity when undergoing a divorce. People must ensure that their records are in order in the event that any contentious issues should arise. In this case, these records could be integral in clearing up any gray area that may be present in the individuals’ finances. Detailed records also spare the divorcees from any run-ins with creditors.
Making adjustments to the will
After establishing that the marriage is nearing its end, it is advisable for divorcees to make some alterations on certain documents. These documents include the will or insurance policies where one spouse may have been named as a beneficiary. For instance, a man can choose to delete the name of his ex-wife from his will or life insurance policy.
Securing the personal property
Another important tip to safeguard finances would be to keep any important valuables in a safe place. Many divorcees, especially the jilted ones, could steal these possessions or even destroy them. Such valuables like jewelry, coin collections or heirlooms can be safely secured in a safe deposit box.
Proper division of the assets
One thing all divorcees need to avoid is sharing their assets with their ex-spouses. This would snowball into a lot of financial problems and tussles in the future. Thus, proper division of assets like property, cash and other valuables is a must-do activity. Should any of the assets be sold, the person who assumes control of the asset must change ownership to his or her name immediately.
Rowena Kang is a writer and the Director of Content for the Morgan Law Firm. Please visit www.houstondivorce.com for additional information.