Most people get married with the idea that they will live happily ever after till “death do them part.” Unfortunately, not all marriages last a lifetime. If you and your spouse are contemplating divorce, there are certain crucial steps you need to take to protect your financial interests.
Every divorce case is complex, both financially and emotionally. And while no two divorces are exactly the same, there are certain steps you can take to safeguard your finances during and after finalizing your divorce. Here are some of these steps:
Close all joint credit cards
Because most married couples pool their finances, signing up for joint credits is not uncommon. However, as soon as divorce becomes inevitable, it is in your very best interest that you cancel any joint credit card with the credit card company. And this does not simply mean confiscating the credit card but rather calling the company to cancel it. Otherwise, your spouse might as well go behind your back and request another card in your name.
Canceling the credit card is important because as far as the company is concerned, they will not be bound by the terms of your divorce. This means that any debt owed on the card is your joint responsibility, and the credit card company will certainly come after you to recover their money regardless of the nature of your relationship with the co-signer.
Write a budget
While you were together, you probably shared household bills. Thanks to the divorce, however, you will be all alone – financially speaking. Besides, you will likely have additional expenses like legal fees and child and spousal support payments to take care of. This makes budgeting and understanding how divorce impacts your finances all the more important.
Divorce can have both short and long-term financial implications. Find out how you can protect your financial interests during and after your divorce.