When it comes to divorce, money struggles are often listed as the number one thing couples argue about. These arguments can often escalate to divorce. But, what makes this all so bizarre is that a divorce will actually make your financial situation far worse. Then, if you also have children together, your arguments about money aren’t going to go away.
If this comment alone doesn’t change your mind about ending a marriage, then be sure to protect your money as best possible before you sign on that dotted line to make the divorce final. There are some crucial money considerations to handle before you actually get divorced.
1. Close all your mutual accounts. It is far easier and safer to simply close off any mutual financial accounts. No matter what it is, close it and start new. Depending on your arrangement, some debts or investments can be divided, etc… but it is still far safer to start fresh and clean with your own brand new account.
2. Sell off mutual possessions. This is especially critical if the possession still has a loan or debt against it. A divorce does not absolve you of any financial responsibilities of your former spouse. You must do that first, before you get divorced. Even if one of you plans to still keep the house, boat or car. Sell it to yourself, and start a brand new loan.
3. File bankruptcy. If you think that bankruptcy is possible in the near future, do it before the divorce. A divorce agreement is between you and your spouse. It holds no clout with your creditors. If one of you files bankruptcy after the divorce and the other doesn’t, then the creditors will come after the lone duck for all the dough!
4. Know the laws before you start. Don’t pay a lawyer the time to explain the laws to you. Look them up. It is best to understand the specific laws in your state regarding money and divorce before you go to court.
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