Typically, the last thing that is on the couple’s mind when they are saying “I do” is the there is a possibility that a divorce might be in their future. There is no shame in separating if there is nothing keeping the couple together anymore, instead of fighting a losing battle, decide to go your separate paths and find happiness again. If you are considering filing for divorce, there are a several things you might want to do before the process begins.
Divide any assets that are non-marital
Non-marital assets can be defined as property that belongs to one of the spouses or the other and cannot be evenly distributed. This means that the property is not going to be divided amongst the couple during the divorce; a couple of non-marital assets are proceeds from a personal injury, items brought by one of the spouses to the marriage, inherited property, and gifts given specifically to one of the spouses. It is also worth mentioning that there are some cases where an item brought into the marriage is sold, and then the money from that sale is used to buy other property in the marriage. So it is also important to keep track of the paper trail when buying and selling property to be able to differentiate between marital and non-marital property.
Begin making your own credit history
It is not uncommon that the married couple rely solely on the credit of one of the spouses due to a number of reasons. However, if you feel like a divorce is on the horizon and you have little to no credit, it is recommended that you begin building it because you may need to get your credit card, buy another car, and possibly a new home. A good way to begin building credit is getting a secured card or if you have any investments or accounts, you can add your name to those.
Cut down on spending
While it is important to start building credit, it is also equally important to begin managing your money. It is advisable to refrain from spending large amounts of money, going on shopping sprees, or buying expensive items because the goal is to make any debt you two may have as small as possible to it can be more manageable. The higher the debt and the more property you have, the longer, more expensive, and stressful the divorce will be.
Have up to date knowledge of your financial records
It is common for a married couple to have financial accounts such as a saving or checking account, they can also have retirement plans or some stocks. It doesn’t matter of they are joint or separate accounts, it is still important to keep up to date. A good way to do this is by making copies of any statements you have and store them in a place you can easily access. If you are worried that your spouse might try to hide something from the court, make sure you have copies or the actual documents of anything important to be able to present to the court so that there is no question as to what you are entitled to.
Be aware of the timing of your divorce
There are some cases where the timing of when you file and finalize your divorce can have a significant financial impact. There are some marriages in which only one the spouses had income while the other did not. This is important because if one spouse worked and invested into their social security benefits and they were married to their spouse for more than 10 years, then the spouse who did not work during the marriage may be eligible to still receive part of their spouses’ benefits if the divorce and the non-working spouse does not remarry when they turn 62.
Close any joint accounts you two may have
If you feel like a divorce is imminent between the two, it is advisable to begin some strategic planning. To save yourself some stress and headaches, you can begin by starting separate yourself from any accounts you may have together. If you cannot do that but are worried that your spouse may try to withdraw money from a checking account or use the credit card to rack up unwanted debt, you can contact your bank and credit company and close or freeze any accounts you are worried about. If you do need to withdraw money, make sure to keep a detailed record of when you withdrew it and and what it was used for in case you need to give account for it.
