Call Us For A Free Consultation On Your Family Law Case

Preparing your finances for divorce

On Behalf of | Apr 14, 2023 | Divorce

Divorce is one of the most disruptive things that could happen to your finances if you do not make proper preparations. For some people, it is on the same level as losing a job.

The good news is that most of the things that happen during divorce are predictable. That means that you can probably avoid all of the most common problems with some work and foresight.

Before initiating the action

One long-standing issue for divorcing couples is financial fraud. Either intentionally or by a particularly self-serving oversight, spouses tend to forget assets during the division process.

If you are in control of your finances, it would probably be in your best interest to be as thorough as possible when collecting information for discovery. There are significant potential penalties if your spouse finds a pattern of hidden assets.

If you are not in control of your finances, collecting information before you take legal action might be wise. It is usually easier at that point to get the documents you need to get what you deserve.

During negotiations or litigation

Divorce does not have to take a long time. That said, it can be a lengthy process if you are unable to reach a quick agreement with your spouse.

Delays could provide ample time for the abuse of joint accounts. It is probably in the interest of both parties to prevent this: by closing shared credit cards, for example. Depending on the situation, some people even remove some shared funds and place them in a personal account — but keep in mind that the money is probably still subject to division.

It is easy to make costly mistakes, even if you do not consider yourself to be particularly wealthy. It is not uncommon for people to fight over every single dollar during a divorce, so strategy is often important.