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Making sound divorce financial decisions

Money is often one factor that leads to divorce, and many in Waukegan going through a divorce find that these fights continue throughout the process. After all, even those striving for an amicable divorce may find that emotions get in the way of making sound financial decisions. Therefore, it is important that individuals protect their interests.

First, it is important for each spouse to have good credit. Checking one's credit report is a good first step. Moreover, a person should look over all their financial accounts, such as joint savings accounts or credit cards to determine whether they are an authorized user on these accounts. It may also be a good idea for an individual who is facing the prospect of divorce to obtain his or her own credit card.

Also, keep in mind that during property division not only will assets be divided, but also debts. Therefore, before beginning this process, it can help individuals to develop a post-divorce budget to determine how much marital debt he or she can accumulate.

Couples going through divorce have some options when dividing financial accounts. One option is to pay off all their credit cards, take off their names as authorized users and close credit cards and bank accounts. Another option is to close any financial accounts they own together, and divvy up the balance during the property division process.

Couples going through divorce also have some options to dividing a large asset, such as a home. One choice is to have one spouse purchase the home from his or her ex. In order to do so, they may need to refinance their mortgage and ensure the spouse keeping the loan can pay for it. Some couples find that, instead of keeping the home, it is simpler to put it up for sale and then divide the proceeds.

As this shows, there are many financial decisions to make leading up to divorce and throughout the divorce process. Because these decisions can affect one's finances for years to come, it is important that individuals be fully informed of their options and rights. An attorney can help demystify the somewhat confusing property division process, so their clients can make sound decisions.

Source: NerdWallet, "How to Untangle Your Finances in a Divorce," Bev O'Shea, Hal M. Bundrick & Dayanna Yochim, June 23, 2017

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