Financial Plans to Make Before Filing for Divorce
Posted on: January 21, 2019
If you are considering divorce and you and your spouse have a high net worth, then there are certain steps you would be wise to take before filing. Even a family with a modest income can benefit from some of these financial plans before a divorce. Keep reading to learn about them. If you have questions, or if you want to move forward with your divorce process, contact Law Office of Michael L. Fell at (949) 585-9055 right away.
Be Aware of Community Debt and Avoid Increasing It
The bottom line is that many people have no idea what to expect once they file for divorce. It is not uncommon for a person to get credit cards and max them out, or make large purchases that take them into debt. This is not generally meant to be destructive to their partner, but helps the person taking out the debt to fell less uncertain as they gain access to assets that can help them be financially stable.
This is not a good idea. When you do this, this will only increase your community debt and you will be responsible for repaying part of that. Remember that even short marriages will make the lower earner eligible for spousal support in most situations in which a pre-nuptial agreement is not in place. At Law Office of Michael L. Fell we can enter in a temporary alimony request so that you can support yourself immediately while the divorce is settled.
Start Working or Continue Working
If you are not yet working, we recommend that you start right away. If you are working, keep working and pick up hours or responsibilities if possible. This is especially wise if there is a pre-nuptial in place that will limit your alimony payments. Even if you are eligible for alimony, you want to show the courts and your future ex that you are making an honest attempt to support yourself.
Keep Your Individual Assets Separate
Most property or assets obtained during a marriage is community property and both spouse own it equally. However, there are exceptions and you should keep those exceptions separate. Examples include inheritances, awards for personal injury cases, workers’ compensation, or gifts you received individually. Keep these in a separate bank account that only you have access to.
Freeze or Shut Down Joint Credit Accounts
If you and your spouse have joint credit card accounts, or joint checking or savings accounts, close them down or freeze them. You do not want your spouse to find out you are considering divorce and to then charge up your accounts. If you have your paycheck automatically deposited into a joint account and do not want to close or freeze that account, open a new account and have it deposited into that account.
Do you need help filing for divorce or responding to a divorce proceeding your spouse has started? Then contact Law Office of Michael L. Fell at (949) 585-9055 today. We are here to help you find the best way forward.
