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What can you do to protect your finances during a divorce?

On Behalf of | Jan 7, 2022 | Division of Assets

Pennsylvania residents going through a divorce should take immediate action regarding their finances. These tips can help you do so.

Determine your financial situation

Most married couples combine their finances, so it might be impossible to tell how much money you actually have alone in that situation. However, you can go through your finances and financial statements and determine your own personal money situation. Be sure to check credit reports reflecting your personal credit, loan statements and debt that you and your spouse owe.

Close joint finance accounts

Any joint finance accounts you hold with your spouse should immediately be closed during the course of your divorce. If there are any credit cards with an unpaid balance, write a letter to the issuer to apprise it of the divorce and explain that you will pay the balance to prevent your spouse from racking up additional charges. You can find out if you can restrict buying privileges on the account until you pay the remaining balance.

Open accounts in your name alone

You should open new finance accounts that are only in your name. It can help you when you begin to take out loans such as a mortgage or car loan. It also helps you to establish your own credit if you have had a joint credit card with your spouse.

Create an emergency fund

Open a savings account to use strictly as an emergency fund to help you in the event of an unforeseen situation. This is a smart move during a divorce. An extra account for emergencies can be a lifesaver.

Hire a forensic accountant

If you’re going through a high net worth divorce, you’ll want to hire a forensic accountant to go through your finances and determine the state of your finances post-divorce.

Divorce is stressful, but these steps can give you some financial peace of mind.