How can you protect your money during a divorce?

On Behalf of | Dec 27, 2022 | Family Law

Most people emerge from a divorce in a different financial situation. However, you do not have to end up in worse financial shape than your spouse. You can both come out on the other side with proper equitable distribution.

Fortunately, there are a few steps that you can take to secure your financial health.

Understand your complete financial picture

You need to know the total value of all of your assets. You may think you know how much money you have, but until you appraise your estate, you may not know the extent of your valuable assets. Once you know how much you have, you can devise a plan to split it.

Start combining your finances

Once you plan to divorce, split your checking and savings accounts. If you worry that your spouse may pull your money out, it is wise to have separate accounts. Additionally, you can track your separate money rather than combine your funds when you intend to split them up after the divorce.

Refrain from hiding assets

Sometimes a spouse will prematurely hide assets or money to protect them. He or she may think the other person will drain the accounts or take most of the assets. Even if you worry, you should never hide the assets. You have to report all of your assets and could face legal consequences if you hide your assets. Be upfront about everything that you have. Splitting accounts does not mean that you should hide the funds.

In addition to your bank accounts and other assets, make sure you understand your tax responsibilities because they can factor into what you receive.

Archives

FindLaw Network